| ý |   | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     |
|--------|--------|---------------------------------------------------------------|
|   |   | SECURITIES      EXCHANGE ACT OF 1934                          |
|   |   | For      the fiscal year ended December 31, 2009              |
|   |   | OR                                                            |
| o      |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|   |   | SECURITIES      EXCHANGE ACT OF 1934                          |

| Florida                                            |   | 0-13358                       |   | 59-2273542                             |
|----------------------------------------------------|--------|-------------------------------|--------|----------------------------------------|
| (State      of Incorporation)                      |   | (Commission      File Number) |   | (IRS      Employer Identification No.) |
| 217      North Monroe Street, Tallahassee, Florida |   |  32301                   |
| (Address      of principal executive offices)      |   | (Zip      Code)               |

| Class                                        |   | Outstanding      at February 26, 2010 |
|----------------------------------------------|--------|---------------------------------------|
| Common      Stock, $0.01 par value per share |   | 17,056,303      shares                |
|                                         |   |                                  |

----

| PART I                   |   |                                                                                                                             |   | PAGE     |
|--------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|----------|
|                     |   |                                                                                                                             |   |     |
| Item      1.             |   | Business                                                                                                                         |   | 4        |
| Item      1A.            |   | Risk      Factors                                                                                                                |   | 16       |
| Item      1B.            |   | Unresolved Staff      Comments                                                                                                   |   | 25       |
| Item      2.             |   | Properties                                                                                                                       |   | 25       |
| Item      3.             |   | Legal      Proceedings                                                                                                           |   | 25       |
| Item      4.             |   | Reserved                                                                                                                    |   |  25 |
|                     |   |                                                                                                                             |   |     |
| PART II                  |   |                                                                                                                             |   |     |
|                     |   |                                                                                                                             |   |     |
|  Item      5.  |   | Market for the      Registrant’s Common Equity, Related Shareowner Matters, and Issuer      Purchases of Equity Securities |   | 25       |
| Item      6.             |   | Selected      Financial Data                                                                                                     |   | 27       |
| Item      7.             |   | Management's Discussion and      Analysis of Financial Condition and Results of      Operations                                  |   | 28       |
| Item      7A.            |   | Quantitative and      Qualitative Disclosure About Market Risk                                                                   |   | 55       |
| Item      8.             |   | Financial      Statements and Supplementary Data                                                                                 |   | 56       |
| Item      9.             |   | Changes in and      Disagreements with Accountants on Accounting and Financial      Disclosure                                   |   | 94       |
| Item      9A.            |   | Controls and      Procedures                                                                                                     |   | 94       |
| Item      9B.            |   | Other      Information                                                                                                           |   | 94       |
|                     |   |                                                                                                                             |   |     |
| PART III                 |   |                                                                                                                             |   |     |
|                     |   |                                                                                                                             |   |     |
| Item      10.            |   | Directors,      Executive Officers, and Corporate Governance                                                                     |   | 96       |
| Item      11.            |   | Executive      Compensation                                                                                                      |   | 96       |
| Item      12.            |   | Security Ownership      of Certain Beneficial Owners and Management and Related Shareowner      Matters                          |   | 96       |
| Item      13.            |   | Certain      Relationships and Related Transactions, and Director      Independence                                              |   | 97       |
| Item      14.            |   | Principal      Accountant Fees and Services                                                                                      |   | 97       |
|                     |   |                                                                                                                             |   |     |
| PART IV                  |   |                                                                                                                             |   |     |
|                     |   |                                                                                                                             |   |     |
| Item      15.            |   | Exhibits and Financial      Statement Schedules                                                                                  |   | 98       |
| Signatures               |   | 100                                                                                                                              |

----

| §   | legislative      or regulatory changes; |
|--------------------|-----------------------------------------|

| §   | the      strength of the United States economy in general and the strength of the      local economies in which we conductoperations; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| §   | the      accuracy of our financial statement estimates and assumptions, including      the estimate for our loan lossprovision; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| §   | the      effects of the health and soundness of other financial institutions,      including the FDIC’s need to increase Deposit Insurance Fund      assessments; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | our      ability to declare and paydividends; |
|--------------------|-----------------------------------------------|

| §   | changes      in the securities and real estatemarkets; |
|--------------------|--------------------------------------------------------|

| §   | changes      in monetary and fiscal policies of the U.S.  Government; |
|--------------------|-----------------------------------------------------------------------|

| §   | inflation,      interest rate, market and monetaryfluctuations; |
|--------------------|-----------------------------------------------------------------|

| §   | the      frequency and magnitude of foreclosure of our  loans; |
|--------------------|----------------------------------------------------------------|

| §   | the      effects of our lack of a diversified loan portfolio, including the risks      of geographic and industryconcentrations; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| §   | our      need and our ability to incur additional debt or equity      financing; |
|--------------------|----------------------------------------------------------------------------------|

| §   | our      ability to integrate the business and operations of companies and banks      that we have acquired, and those we may acquire in the    future; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | the effects of harsh weather conditions, including      hurricanes; |
|--------------------|---------------------------------------------------------------------|

| §   | our      ability to comply with the extensive laws and regulations to which we are      subject; |
|--------------------|--------------------------------------------------------------------------------------------------|

| §   | the      willingness of clients to accept third-party products and services rather      than our products and services and viceversa; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| §   | increased      competition and its effect onpricing; |
|--------------------|------------------------------------------------------|

| §   | technological      changes; |
|--------------------|-----------------------------|

| §   | the      effects of security breaches and computer viruses that may affect our      computer systems; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| §   | changes      in consumer spending and savinghabits; |
|--------------------|-----------------------------------------------------|

| §   | growth      and profitability of our noninterestincome; |
|--------------------|---------------------------------------------------------|

| §   | changes      in accounting principles, policies, practices or    guidelines; |
|--------------------|------------------------------------------------------------------------------|

| §   | the      limited trading activity of our commonstock; |
|--------------------|-------------------------------------------------------|

| §   | the      concentration of ownership of our commonstock; |
|--------------------|---------------------------------------------------------|

| §   | anti-takeover      provisions under federal and state law as well as our Articles of      Incorporation and our Bylaws; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| §   | other      risks described from time to time in our filings with the Securities and      Exchange Commission; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| §   | our      ability to manage the risks involved in the  foregoing. |
|--------------------|------------------------------------------------------------------|

----

PART I

Item1.        Business

----

| §   | Business Banking – The      Bank provides banking services to corporations and other business clients.      Credit products are available for a wide variety of general business      purposes, including financing for commercial business properties,      equipment, inventories and accounts receivable, as well as commercial      leasing and letters of credit.  We also provide treasury      management services, and, through a marketing alliance with Elavon, Inc.,      merchant credit card transaction processing  services. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Commercial Real Estate      Lending – The Bank provides a wide range of products to meet the      financing needs of commercial developers and investors, residential      builders and developers, and community development.  Credit      products are available to facilitate the purchase of land and/or build      structures for business use and for investors who are developing      residential or commercial property. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Residential Real Estate      Lending – The Bank provides products to help meet the home      financing needs of consumers, including conventional permanent and      construction/permanent (fixed or adjustable rate) financing arrangements,      and FHA/VA loan products.  The bank offers both fixed-rate and      adjustable rate residential mortgage (ARM) loans.  As of      December 31, 2009, approximately 13.2% of the Bank’s loan portfolio      consisted of residential ARM loans.  A portion of our loans      originated are sold into the secondary market.  The Bank offers      these products through its existing network of banking      offices.  We do not originate subprime residential real estate      loans. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Retail Credit – The      Bank provides a full range of loan products to meet the needs of      consumers, including personal loans, automobile loans, boat/RV loans, home      equity loans, and credit cardprograms. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Institutional Banking –      The Bank provides banking services to meet the needs of state and local      governments, public schools and colleges, charities, membership and      not-for-profit associations including customized checking and savings      accounts, cash management systems, tax-exempt loans, lines of credit, and      term loans. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Retail Banking – The      Bank provides a full range of consumer banking services, including      checking accounts, savings programs, automated teller machines (ATMs),      debit/credit cards, night deposit services, safe deposit facilities,      PC/Internet banking, and mobile banking.  Clients can use      Capital City Bank Direct which offers both a “live” call center between      the hours of 8 a.m. to 6 p.m. five days a week, and an automated phone      system offering 24-hour access to their deposit and loan account      information, and transfer funds between linked accounts.  The      Bank is a member of the “Star” ATM Network that permits banking clients to      access cash at ATMs or point of salemerchants. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   | Market      Share as of June 30,(1) |   |
|----------------------------|--------|-------------------------------------|--------|
|                       |   | 2009                                |   |   | 2008 |   |   | 2007 |   |
| Florida                    |   |                                |   |   |   |   |   |   |   |
| Alachua County        |   |                                | 3.9    | % |   |   | 4.6 | % |   |   | 4.7 | % |
| Bradford County       |   |                                | 51.3   | % |   |   | 50.1 | % |   |   | 47.6 | % |
| Citrus County         |   |                                | 2.7    | % |   |   | 3.1 | % |   |   | 3.0 | % |
| Clay County           |   |                                | 1.7    | % |   |   | 1.9 | % |   |   | 2.0 | % |
| Dixie County          |   |                                | 23.4   | % |   |   | 23.4 | % |   |   | 22.9 | % |
| Gadsden County        |   |                                | 55.1   | % |   |   | 55.7 | % |   |   | 61.0 | % |
| Gilchrist County      |   |                                | 39.5   | % |   |   | 37.8 | % |   |   | 33.6 | % |
| Gulf County           |   |                                | 7.7    | % |   |   | 9.1 | % |   |   | 11.7 | % |
| Hernando County       |   |                                | 1.6    | % |   |   | 1.2 | % |   |   | 1.2 | % |
| Jefferson County      |   |                                | 18.3   | % |   |   | 21.9 | % |   |   | 22.8 | % |
| Leon County           |   |                                | 15.9   | % |   |   | 17.6 | % |   |   | 16.2 | % |
| Levy County           |   |                                | 27.9   | % |   |   | 31.7 | % |   |   | 33.0 | % |
| Madison County        |   |                                | 10.1   | % |   |   | 12.1 | % |   |   | 13.1 | % |
| Pasco County          |   |                                | 0.2    | % |   |   | 0.2 | % |   |   | 0.2 | % |
| Putnam County         |   |                                | 14.0   | % |   |   | 19.7 | % |   |   | 11.1 | % |
| St.      Johns County |   |                                | 0.8    | % |   |   | 1.1 | % |   |   | 1.2 | % |
| Suwannee County       |   |                                | 6.6    | % |   |   | 7.2 | % |   |   | 7.7 | % |
| Taylor County         |   |                                | 30.7   | % |   |   | 31.1 | % |   |   | 30.1 | % |
| Wakulla County        |   |                                | 3.8    | % |   |   | 5.5 | % |   |   | 2.6 | % |
| Washington County     |   |                                | 14.2   | % |   |   | 17.0 | % |   |   | 13.8 | % |
| Georgia                    |   |                                |   |   |   |   |   |   |   |   |   |   |
| Bibb County           |   |                                | 2.6    | % |   |   | 2.1 | % |   |   | 2.5 | % |
| Burke County          |   |                                | 7.7    | % |   |   | 7.4 | % |   |   | 7.8 | % |
| Grady      County          |   |                                | 16.2   | % |   |   | 16.7 | % |   |   | 18.7 | % |
| Laurens County        |   |                                | 12.7   | % |   |   | 16.2 | % |   |   | 19.2 | % |
| Troup County          |   |                                | 5.9    | % |   |   | 5.6 | % |   |   | 6.2 | % |
| Alabama                    |   |                                |   |   |   |   |   |   |   |   |   |   |
| Chambers County       |   |                                | 6.6    | % |   |   | 7.3 | % |   |   | 6.5 | % |

| (1) | Obtained      from the June 30, 2009 FDIC/OTS Summary of Deposits  Report. |
|-----|----------------------------------------------------------------------------|

----

| County                       |   | Number      ofCommercial      Banks |   |   | Number      of Commercial Bank Offices |   |
|------------------------------|--------|-------------------------------------|--------|--------|----------------------------------------|--------|
| Florida                      |   |                                |   |   |                                   |   |
|         Alachua    |   |                                | 15     |   |                                   |   | 66 |   |
|         Bradford   |   |                                | 3      |   |                                   |   | 3 |   |
|         Citrus     |   |                                | 14     |   |                                   |   | 49 |   |
|         Clay       |   |                                | 15     |   |                                   |   | 31 |   |
|         Dixie      |   |                                | 4      |   |                                   |   | 4 |   |
|         Gadsden    |   |                                | 4      |   |                                   |   | 6 |   |
|         Gilchrist  |   |                                | 3      |   |                                   |   | 6 |   |
|         Gulf       |   |                                | 6      |   |                                   |   | 9 |   |
|         Hernando   |   |                                | 13     |   |                                   |   | 43 |   |
|         Jefferson  |   |                                | 2      |   |                                   |   | 2 |   |
|         Leon       |   |                                | 20     |   |                                   |   | 96 |   |
|         Levy       |   |                                | 3      |   |                                   |   | 13 |   |
|         Madison    |   |                                | 6      |   |                                   |   | 6 |   |
|         Pasco      |   |                                | 26     |   |                                   |   | 120 |   |
|         Putnam     |   |                                | 6      |   |                                   |   | 16 |   |
|         St. Johns  |   |                                | 23     |   |                                   |   | 66 |   |
|         Suwannee   |   |                                | 5      |   |                                   |   | 8 |   |
|         Taylor     |   |                                | 3      |   |                                   |   | 4 |   |
|         Wakulla    |   |                                | 4      |   |                                   |   | 7 |   |
|         Washington |   |                                | 6      |   |                                   |   | 5 |   |
| Georgia                      |   |                                |   |   |                                   |   |   |   |
|         Bibb       |   |                                | 12     |   |                                   |   | 57 |   |
|         Burke      |   |                                | 5      |   |                                   |   | 10 |   |
|         Grady      |   |                                | 5      |   |                                   |   | 8 |   |
|         Laurens    |   |                                | 10     |   |                                   |   | 20 |   |
|        Troup            |   |                                | 11     |   |                                   |   | 27 |   |
| Alabama                      |   |                                |   |   |                                   |   |   |   |
|         Chambers   |   |                                | 5      |   |                                   |   | 10 |   |

----

----

----

----

----

----

| §   | internal      policies, procedures and controls designed to implement and maintain the      savings association’s compliance with all of the requirements of the USA      PATRIOT Act, the BSA and related laws and  regulations; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | systems      and procedures for monitoring and reporting of suspicious transactions and      activities; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| §   | a      designated compliance officer; |
|--------------------|---------------------------------------|

| §   | employee      training; |
|--------------------|-------------------------|

| §   | an      independent audit function to test the anti-money laundering      program; |
|--------------------|------------------------------------------------------------------------------------|

| §   | procedures      to verify the identity of each customer upon the opening of accounts;      and |
|--------------------|------------------------------------------------------------------------------------------------|

| §   | heightened      due diligence policies, procedures and controls applicable to certain      foreign accounts and relationships. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

----

FHLB 
of 
Atlanta, the Bank is required to own capital stock in the FHLBin an amount at least equal to 0.18% (or 18 basis points) of the Bank’s totalassets at the end of each calendar year, plus 4.5% of its outstanding advances(borrowings) from the 
FHLB 
of
Atlanta under the activity-based stock ownershiprequirement.  On December 31, 2009, the Bank was in compliancewith this requirement.

----

----

Risk Factors

----

| §   | the      risk characteristics of various classifications of  loans; |
|--------------------|---------------------------------------------------------------------|

| §   | previous      loan loss experience; |
|--------------------|-------------------------------------|

| §   | specific      loans that have loss potential; |
|--------------------|-----------------------------------------------|

| §   | delinquency      trends; |
|--------------------|--------------------------|

| §   | estimated      fair market value of thecollateral; |
|--------------------|----------------------------------------------------|

| §   | current      economic conditions; and |
|--------------------|---------------------------------------|

| §   | geographic      and industry loan concentrations. |
|--------------------|---------------------------------------------------|

----

----

| §   | Commercial Real Estate      Loans. Repayment is dependent on income being generated in amounts      sufficient to cover operating expenses and debt service.  These      loans also involve greater risk because they are generally not fully      amortizing over a loan period, but rather have a balloon payment due at      maturity.  A borrower’s ability to make a balloon payment      typically will depend on being able to either refinance the loan or timely      sell the underlying property. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Commercial Loans.      Repayment is generally dependent upon the successful operation of the      borrower’s business.  In addition, the collateral securing the      loans may depreciate over time, be difficult to appraise, be illiquid, or      fluctuate in value based on the success of the  business. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Construction Loans. The      risk of loss is largely dependent on our initial estimate of whether the      property’s value at completion equals or exceeds the cost of property      construction and the availability of take-out financing.  During      the construction phase, a number of factors can result in delays or cost      overruns.  If our estimate is inaccurate or if actual      construction costs exceed estimates, the value of the property securing      our loan may be insufficient to ensure full repayment when completed      through a permanent loan, sale of the property, or by seizure of      collateral. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Vacant Land Loans.      Because vacant or unimproved land is generally held by the borrower      for investment purposes or future use, payments on loans secured by vacant      or unimproved land will typically rank lower in priority to the borrower      than a loan the borrower may have on their primary residence or      business.  These loans are susceptible to adverse conditions in      the real estate market and localeconomy. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Consumer Loans.      Consumer loans (such as personal lines of credit) are collateralized, if      at all, with assets that may not provide an adequate source of payment of      the loan due to depreciation, damage, orloss. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| §   | general      or local economic conditions; |
|--------------------|--------------------------------------------|

| §   | environmental      cleanup liability; |
|--------------------|---------------------------------------|

| §   | neighborhood      values; |
|--------------------|---------------------------|

| §   | interest      rates; |
|--------------------|----------------------|

| §   | real      estate tax rates; |
|--------------------|-----------------------------|

| §   | operating      expenses of the mortgagedproperties; |
|--------------------|-----------------------------------------------------|

| §   | supply      of and demand for rental units orproperties; |
|--------------------|----------------------------------------------------------|

| §   | ability      to obtain and maintain adequate occupancy of the    properties; |
|--------------------|------------------------------------------------------------------------------|

| §   | zoning      laws; |
|--------------------|-------------------|

| §   | governmental      rules, regulations and fiscal policies;and |
|--------------------|--------------------------------------------------------------|

| §   | acts      of God. |
|--------------------|-------------------|

----

----

----

----

| §   | Supermajority      voting requirements to remove a director from  office; |
|--------------------|---------------------------------------------------------------------------|

| §   | Provisions      regarding the timing and content of shareowner proposals and      nominations; |
|--------------------|------------------------------------------------------------------------------------------------|

| §   | Supermajority      voting requirements to amend Articles of Incorporation unless approval is      received by a majority of “disinterested  directors”; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Absence      of cumulative voting; and |
|--------------------|----------------------------------------|

| §   | Inability      for shareowners to take action by written  consent. |
|--------------------|--------------------------------------------------------------------|

----

| Item      1B. |  Unresolved Staff  Comments |
|---------------|----------------------------------|

|   | Properties |
|--------|------------|

| Item 3. | Legal      Proceedings |
|---------|------------------------|

| Item      4. | Reserved |
|--------------|----------|

PART II

| Item 5. | Market for the Registrant's Common Equity,      Related Shareowner Matters, and Issuer Purchases of Equity      Securities |
|---------|----------------------------------------------------------------------------------------------------------------------------|

|                                   | 2009          |   | 2008         |   |
|----------------------------------------|---------------|--------|--------------|--------|
|                                   | FourthQuarter |   | ThirdQuarter |   | SecondQuarter |   | FirstQuarter |   | FourthQuarter |   | ThirdQuarter |   | SecondQuarter |   | FirstQuarter |   |
| Common      stock price:               |          |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High                                   |          | $      | 14.34        |   |   | $ | 17.10 |   |   | $ | 17.35 |   |   | $ | 27.31 |   |   | $ | 33.32 |   |   | $ | 34.50 |   |   | $ | 30.19 |   |   | $ | 29.99 |   |
| Low                                    |          |   | 11.00        |   |   |   | 13.92 |   |   |   | 11.01 |   |   |   | 9.50 |   |   |   | 21.06 |   |   |   | 19.20 |   |   |   | 21.76 |   |   |   | 24.76 |   |
| Close                                  |          |   | 13.84        |   |   |   | 14.20 |   |   |   | 16.85 |   |   |   | 11.46 |   |   |   | 27.24 |   |   |   | 31.35 |   |   |   | 21.76 |   |   |   | 29.00 |   |
| Cash      dividends declared per share |          |   | .1900        |   |   |   | .1900 |   |   |   | .1900 |   |   |   | .1900 |   |   |   | .1900 |   |   |   | .1850 |   |   |   | .1850 |   |   |   | .1850 |   |

----

|                               |     |   | Period      Ending |   |     |   |
|------------------------------------|----------|--------|--------------------|--------|----------|--------|
| Index                              | 12/31/04 |   | 12/31/05           |   | 12/31/06 |   | 12/31/07 |   | 12/31/08 |   | 12/31/09 |   |
| Capital      City Bank Group, Inc. |     | $      | 100.00             |   |     | $      | 104.36 |   |   | $ | 109.58 |   |   | $ | 89.68 |   |   | $ | 89.10 |   |   | $ | 48.04 |   |
| NASDAQ      Composite              |     |   | 100.00             |   |     |   | 101.37 |   |   |   | 111.03 |   |   |   | 121.92 |   |   |   | 72.49 |   |   |   | 104.31 |   |
| SNL      $1B-$5B Bank Index        |     |   | 100.00             |   |     |   | 98.29 |   |   |   | 113.74 |   |   |   | 82.85 |   |   |   | 64.72 |   |   |   | 49.26 |   |

----

| Item      6. | Selected Financial    Data |   |
|--------------|----------------------------|--------|

|                                                           |   | For      the Years Ended December 31, |       |
|----------------------------------------------------------------|--------|---------------------------------------|------------|
| (Dollars in Thousands, Except      Per Share Data)(1)      (3) |   | 2009                                  |       |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                           |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Income                                           |   | $                                     | 122,776    |   |   | $ | 142,866 |   |   | $ | 165,323 |   |   | $ | 165,893 |   |   | $ | 140,053 |   |
| Net      Interest Income                                       |   |                                  | 105,934    |   |   |   | 108,866 |   |   |   | 112,241 |   |   |   | 119,136 |   |   |   | 109,990 |   |
| Provision      for Loan Losses                                 |   |                                  | 40,017     |   |   |   | 32,496 |   |   |   | 6,163 |   |   |   | 1,959 |   |   |   | 2,507 |   |
| Net      (Loss) Income                                         |   |                                  | (3,471     | ) |   |   | 15,225 |   |   |   | 29,683 |   |   |   | 33,265 |   |   |   | 30,281 |   |
|                                                           |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per      Common Share:                                         |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      Net (Loss) Income                                   |   | $                                     | (0.20      | )  |   | $ | 0.89 |   |   | $ | 1.66 |   |   | $ | 1.79 |   |   | $ | 1.66 |   |
| Diluted      Net (Loss) Income                                 |   |                                  | (0.20      | )  |   |   | 0.89 |   |   |   | 1.66 |   |   |   | 1.79 |   |   |   | 1.66 |   |
| Cash      Dividends Declared                                   |   |                                  | .760       |   |   |   | .745 |   |   |   | .710 |   |   |   | .663 |   |   |   | .619 |   |
| Book      Value                                                |   |                                  | 15.72      |   |   |   | 16.27 |   |   |   | 17.03 |   |   |   | 17.01 |   |   |   | 16.39 |   |
|                                                           |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Key      Performance Ratios:                                   |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on Average Assets                                  |   |                                  | (0.14      | )% |   |   | 0.59 | % |   |   | 1.18 | % |   |   | 1.29 | % |   |   | 1.22 | % |
| Return      on Average Equity                                  |   |                                  | (1.26      | )  |   |   | 5.06 |   |   |   | 9.68 |   |   |   | 10.48 |   |   |   | 10.56 |   |
| Net      Interest Margin (FTE)                                 |   |                                  | 4.96       |   |   |   | 4.96 |   |   |   | 5.25 |   |   |   | 5.35 |   |   |   | 5.09 |   |
| Dividend      Pay-Out Ratio                                    |   |                                  | NM         |   |   |   | 83.71 |   |   |   | 42.77 |   |   |   | 37.01 |   |   |   | 37.35 |   |
| Equity      to Assets Ratio                                    |   |                                  | 9.89       |   |   |   | 11.20 |   |   |   | 11.19 |   |   |   | 12.15 |   |   |   | 11.65 |   |
|                                                           |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset      Quality:                                            |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for Loan Losses                                 |   | $                                     | 43,999     |   |   | $ | 37,004 |   |   | $ | 18,066 |   |   | $ | 17,217 |   |   | $ | 17,410 |   |
| Allowance      for Loan Losses to Loans                        |   |                                  | 2.30       | % |   |   | 1.89 | % |   |   | 0.95 | % |   |   | 0.86 | % |   |   | 0.84 | % |
| Nonperforming      Assets                                      |   |                                  | 144,052    |   |   |   | 107,842 |   |   |   | 28,163 |   |   |   | 8,731 |   |   |   | 5,550 |   |
| Nonperforming      Assets to Loans + ORE                       |   |                                  | 7.38       |   |   |   | 5.48 |   |   |   | 1.47 |   |   |   | 0.44 |   |   |   | 0.27 |   |
| Allowance      to Nonperforming Loans                          |   |                                  | 40.77      |   |   |   | 37.52 |   |   |   | 71.92 |   |   |   | 214.09 |   |   |   | 331.11 |   |
| Net      Charge-Offs to Average Loans                          |   |                                  | 1.66       |   |   |   | 0.71 |   |   |   | 0.27 |   |   |   | 0.11 |   |   |   | 0.13 |   |
|                                                           |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Averages      for the Year:                                    |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      Net                                                |   | $                                     | 1,961,990  |   |   | $ | 1,918,417 |   |   | $ | 1,934,850 |   |   | $ | 2,029,397 |   |   | $ | 1,968,289 |   |
| Earning      Assets                                            |   |                                  | 2,184,232  |   |   |   | 2,240,649 |   |   |   | 2,183,528 |   |   |   | 2,258,277 |   |   |   | 2,187,672 |   |
| Total      Assets                                              |   |                                  | 2,516,815  |   |   |   | 2,567,905 |   |   |   | 2,507,217 |   |   |   | 2,581,078 |   |   |   | 2,486,733 |   |
| Deposits                                                       |   |                                  | 1,992,429  |   |   |   | 2,066,065 |   |   |   | 1,990,446 |   |   |   | 2,034,931 |   |   |   | 1,954,888 |   |
| Subordinated      Notes                                        |   |                                  | 62,887     |   |   |   | 62,887 |   |   |   | 62,887 |   |   |   | 62,887 |   |   |   | 50,717 |   |
| Long-Term      Borrowings                                      |   |                                  | 51,973     |   |   |   | 39,735 |   |   |   | 37,936 |   |   |   | 57,260 |   |   |   | 70,216 |   |
| Shareowners'      Equity                                       |   |                                  | 275,545    |   |   |   | 300,890 |   |   |   | 306,617 |   |   |   | 317,336 |   |   |   | 286,712 |   |
|                                                           |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year-End      Balances:                                        |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      Net                                                |   | $                                     | 1,915,940  |   |   | $ | 1,957,797 |   |   | $ | 1,915,850 |   |   | $ | 1,999,721 |   |   | $ | 2,067,494 |   |
| Earning      Assets                                            |   |                                  | 2,369,029  |   |   |   | 2,156,172 |   |   |   | 2,272,829 |   |   |   | 2,270,410 |   |   |   | 2,299,677 |   |
| Total      Assets                                              |   |                                  | 2,708,324  |   |   |   | 2,488,699 |   |   |   | 2,616,327 |   |   |   | 2,597,910 |   |   |   | 2,625,462 |   |
| Deposits                                                       |   |                                  | 2,258,234  |   |   |   | 1,992,174 |   |   |   | 2,142,344 |   |   |   | 2,081,654 |   |   |   | 2,079,346 |   |
| Subordinated      Notes                                        |   |                                  | 62,887     |   |   |   | 62,887 |   |   |   | 62,887 |   |   |   | 62,887 |   |   |   | 62,887 |   |
| Long-Term      Borrowings                                      |   |                                  | 49,380     |   |   |   | 51,470 |   |   |   | 26,731 |   |   |   | 43,083 |   |   |   | 69,630 |   |
| Shareowners'      Equity                                       |   |                                  | 267,899    |   |   |   | 278,830 |   |   |   | 292,675 |   |   |   | 315,770 |   |   |   | 305,776 |   |
|                                                           |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Data:                                               |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      Average Shares Outstanding                          |   |                                  | 17,043,964 |   |   |   | 17,141,454 |   |   |   | 17,909,396 |   |   |   | 18,584,519 |   |   |   | 18,263,855 |   |
| Diluted      Average Shares Outstanding                        |   |                                  | 17,044,711 |   |   |   | 17,146,914 |   |   |   | 17,911,587 |   |   |   | 18,609,839 |   |   |   | 18,281,243 |   |
| Shareowners      of Record(2)                                  |   |                                  | 1,778      |   |   |   | 1,756 |   |   |   | 1,750 |   |   |   | 1,805 |   |   |   | 1,716 |   |
| Banking      Locations(2)                                      |   |                                  | 70         |   |   |   | 68 |   |   |   | 70 |   |   |   | 69 |   |   |   | 69 |   |
| Full-Time      Equivalent Associates(2)                        |   |                                  | 1,006      |   |   |   | 1,042 |   |   |   | 1,097 |   |   |   | 1,056 |   |   |   | 1,013 |   |

| (1) | All share and per share data have      been adjusted to reflect the 5-for-4 stock split effective July 1,      2005. |
|-----|----------------------------------------------------------------------------------------------------------------------|

| (2) | As of record date.  The      record date is on or about March 1st of the following      year. |
|-----|---------------------------------------------------------------------------------------------------------|

| (3) | The      consolidated financial statements reflect the acquisition of First Alachua      Banking Corporation on May 20,2005. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| NM | =      Not meaningful |
|----|-----------------------|

----

| Item 7. | Management's      Discussion and Analysis of Financial Condition and Results of      Operations |
|---------|-------------------------------------------------------------------------------------------------|

|                                                       |   | For the Years Ended December      31, |   |
|------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                       |   | 2009                                  |   |   | 2008 |   |   | 2007 |   |
| Efficiency      ratio                                      |   |                                  | 79.77  | % |   |   | 68.09 | % |   |   | 70.13 | % |
| Effect      of intangible amortization and merger expenses |   |                                  | (2.44  | )% |   |   | (3.19 | )% |   |   | (3.36 | )% |
| Operating      efficiency ratio                            |   |                                  | 77.33  | % |   |   | 64.91 | % |   |   | 66.77 | % |

|                                                                  |   | For the Years Ended December      31, |   |
|-----------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                  |   | 2009                                  |   |   | 2008 |   |   | 2007 |   |
| Net      noninterest expense as a percent of average assets           |   |                                  | 2.97   | % |   |   | 2.12 | % |   |   | 2.50 | % |
| Effect      of intangible amortization and merger expenses            |   |                                  | (0.16  | )% |   |   | (0.22 | )% |   |   | (0.23 | )% |
| Operating      net noninterest expense as a percent of average assets |   |                                  | 2.81   | % |   |   | 1.90 | % |   |   | 2.27 | % |

----

----

| ·   | For      the full year 2009, we realized a net loss of $3.5 million, $0.20 per      diluted share, compared to net income of $15.2 million, or $0.89 per      diluted share for 2008.  For the year, weak economic and real      estate market conditions required an increase in our loan loss      provision.  Higher pension expense, FDIC insurance fees, and an      increase in costs related to the management and resolution of problem      assets also negatively impacted earnings for 2009.  For 2008,      our earnings included a $6.25 million gain ($0.22 per diluted share) from      the sale of a portion of the bank’s merchant services portfolio, a $2.4      million gain from the redemption of Visa shares and the reversal of $1.1      million in Visa related litigationreserves. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | For      2009, tax equivalent net interest income declined $3.1 million, or 2.8%,      to $108.2 million due primarily to a higher level of foregone interest and      lower loan fees, both associated with an increased level of nonperforming      loans.  During the course of 2009, unfavorable asset re-pricing      also placed pressure on our net interest margin, which was flat year over      year at 4.96%. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Loan      loss provision was $40.0 million for 2009 compared to $32.5 million for      2008 with the increase attributable to a higher level of required      reserves.  Growth in the level of nonaccrual loans coupled with      weaker economic conditions and declining property values (primarily vacant      residential land) were the primary factors contributing to the higher      required reserves.  Net loan charge-offs for 2009 were 166 basis      points of average loans compared to 71 basis points in 2008.  At      year-end 2009, the allowance for loan losses was 2.30% of outstanding      loans (net of overdrafts) and provided coverage of 41% of nonperforming      loans, compared to 1.89% and 38%, respectively, at the end of      2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | For      2009, noninterest income decreased $9.6 million, or 14.4%, due to one-time      transactions in 2008, including a $6.25 million pre-tax gain from the      Bank’s merchant services portfolio sale and a $2.4 million pre-tax gain      from the redemption of Visa shares.  Additionally, lower      merchant fees of $3.2 million related to the disposition of a portion of      our merchant services portfolio also contributed to the unfavorable      variance.  Improvement in deposit fees ($400,000) and mortgage      banking fees ($1.1 million) as well as a higher level of card fees      ($794,000), partially offset the aforementioned unfavorable      variances. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Noninterest      expense increased $10.6 million, or 8.8%, in 2009 due to higher legal fees      ($1.7 million), other real estate owned (“OREO”) expenses ($5.7 million),      pension expense ($2.8 million), and FDIC insurance fees ($3.9      million).  Legal fees and OREO expenses were higher due to the      cost of managing and resolving problem assets.  The unfavorable      variance in pension expense reflects a decline in pension asset value in      2008.  FDIC insurance fees increased as a result of the second      quarter special assessment as well as the general increase in premium      rates as mandated by the FDIC.  The unfavorable variance was      also impacted by the reversal of a portion ($1.1 million) of our Visa      litigation accrual in 2008, which had the effect of reducing noninterest      expense.  Lower intangible amortization expense ($1.6 million)      as well as various initiatives to better manage controllable expenses      partially offset the aforementioned unfavorable  variances. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Average      earning assets were $2.244 billion for the fourth quarter of 2009, an      increase of $86.7 million, or 4.0%, from the fourth quarter of 2008 due to      improvement in the overnight funds position primarily driven by deposit      growth of $144.1 million, or 7.4%. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      of December 31, 2009, we are well-capitalized with a risk based capital      ratio of 14.11% and a tangible common equity ratio of 6.84% compared to      14.69% and 7.76%, respectively, at year-end  2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                     |   | For      the Years Ended December 31, |    |
|----------------------------------------------------------|--------|---------------------------------------|---------|
| (Dollars      in Thousands, Except Per Share Data)       |   | 2009                                  |    |   | 2008 |   |   | 2007 |   |
| Interest      Income                                     |   | $                                     | 122,776 |   |   | $ | 142,866 |   |   | $ | 165,323 |   |
| Taxable      Equivalent Adjustments                      |   |                                  | 2,296   |   |   |   | 2,482 |   |   |   | 2,420 |   |
| Total      Interest Income (FTE)                         |   |                                  | 125,072 |   |   |   | 145,348 |   |   |   | 167,743 |   |
| Interest      Expense                                    |   |                                  | 16,842  |   |   |   | 34,000 |   |   |   | 53,082 |   |
| Net      Interest Income (FTE)                           |   |                                  | 108,230 |   |   |   | 111,348 |   |   |   | 114,661 |   |
| Provision      for Loan Losses                           |   |                                  | 40,017  |   |   |   | 32,496 |   |   |   | 6,163 |   |
| Taxable      Equivalent Adjustments                      |   |                                  | 2,296   |   |   |   | 2,482 |   |   |   | 2,420 |   |
| Net      Interest Income After Provision for Loan Losses |   |                                  | 65,917  |   |   |   | 76,370 |   |   |   | 106,078 |   |
| Noninterest      Income                                  |   |                                  | 57,391  |   |   |   | 67,040 |   |   |   | 59,300 |   |
| Noninterest      Expense                                 |   |                                  | 132,115 |   |   |   | 121,472 |   |   |   | 121,992 |   |
| (Loss)      Income Before Income Taxes                   |   |                                  | (8,807  | ) |   |   | 21,938 |   |   |   | 43,386 |   |
| Income      Tax (Benefit) Expense                        |   |                                  | (5,336  | ) |   |   | 6,713 |   |   |   | 13,703 |   |
| Net      (Loss) Income                                   |   | $                                     | (3,471  | ) |   | $ | 15,225 |   |   | $ | 29,683 |   |
|                                                     |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Basic      Net (Loss) Income Per Share                   |   | $                                     | (0.20   | ) |   | $ | 0.89 |   |   | $ | 1.66 |   |
| Diluted      Net (Loss) Income Per Share                 |   | $                                     | (0.20   | ) |   | $ | 0.89 |   |   | $ | 1.66 |   |

----

----

|                                                   |   | 2009    |      | 2008     |   | 2007    |   |
|--------------------------------------------------------|--------|---------|-----------|----------|--------|---------|--------|
| (Taxable      Equivalent Basis - Dollars in Thousands) |   | Balance |      | Interest |   | Rate    |   | Balance |   | Interest |   | Rate |   | Balance |   | Interest |   | Rate |   |
| ASSETS                                                 |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      Net of Unearned Interest(1)(2)             |   | $       | 1,961,990 |     | $      | 118,186 |   |   | 6.02 | % | $ | 1,918,417 |   | $ | 133,457 |   |   | 6.96 | % | $ | 1,934,850 |   | $ | 155,434 |   |   | 8.03 | % |
| Taxable      Investment Securities                     |   |    | 83,648    |     |   | 2,698   |   |   | 3.22 |   |   | 93,149 |   |   | 3,889 |   |   | 5.04 |   |   | 103,840 |   |   | 4,949 |   |   | 4.76 |   |
| Tax-Exempt      Investment Securities(2)               |   |    | 105,683   |     |   | 4,106   |   |   | 3.88 |   |   | 97,010 |   |   | 4,893 |   |   | 4.16 |   |   | 84,849 |   |   | 4,447 |   |   | 5.24 |   |
| Funds      Sold                                        |   |    | 32,911    |     |   | 82      |   |   | 0.25 |   |   | 132,073 |   |   | 3,109 |   |   | 2.32 |   |   | 59,989 |   |   | 2,913 |   |   | 4.79 |   |
| Total      Earning Assets                              |   |    | 2,184,232 |     |   | 125,072 |   |   | 5.73 | % |   | 2,240,649 |   |   | 145,348 |   |   | 6.48 | % |   | 2,183,528 |   |   | 167,743 |   |   | 7.68 | % |
| Cash      & Due From Banks                         |   |    | 76,107    |     |   |    |   |   |   |   |   | 82,410 |   |   |   |   |   |   |   |   | 86,692 |   |   |   |   |   |   |   |
| Allowance      for Loan Losses                         |   |    | (42,331   | )        |   |    |   |   |   |   |   | (23,015 | ) |   |   |   |   |   |   |   | (17,535 | ) |   |   |   |   |   |   |
| Other      Assets                                      |   |    | 298,807   |     |   |    |   |   |   |   |   | 267,861 |   |   |   |   |   |   |   |   | 254,532 |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                      |   | $       | 2,516,815 |     |   |    |   |   |   |   | $ | 2,567,905 |   |   |   |   |   |   |   | $ | 2,507,217 |   |   |   |   |   |   |   |
|                                                   |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                                            |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW      Accounts                                      |   | $       | 711,753   |     | $      | 1,039   |   |   | 0.15 | % | $ | 743,327 |   | $ | 7,454 |   |   | 1.00 | % | $ | $557,060 |   | $ | 10,748 |   |   | 1.93 | % |
| Money      Market Accounts                             |   |    | 320,531   |     |   | 1,288   |   |   | 0.40 |   |   | 374,278 |   |   | 5,242 |   |   | 1.40 |   |   | 397,193 |   |   | 13,667 |   |   | 3.44 |   |
| Savings      Accounts                                  |   |    | 121,582   |     |   | 60      |   |   | 0.05 |   |   | 116,413 |   |   | 121 |   |   | 0.10 |   |   | 119,700 |   |   | 279 |   |   | 0.23 |   |
| Other      Time Deposits                               |   |    | 420,198   |     |   | 8,198   |   |   | 1.95 |   |   | 424,748 |   |   | 14,489 |   |   | 3.41 |   |   | 474,728 |   |   | 19,993 |   |   | 4.21 |   |
| Total      Interest Bearing Deposits                   |   |    | 1,574,064 |     |   | 10,585  |   |   | 0.67 | % |   | 1,658,766 |   |   | 27,306 |   |   | 1.65 | % |   | 1,548,681 |   |   | 44,687 |   |   | 2.89 | % |
| Short-Term      Borrowings                             |   |    | 79,321    |     |   | 291     |   |   | 0.36 |   |   | 61,181 |   |   | 1,157 |   |   | 1.88 |   |   | 66,397 |   |   | 2,871 |   |   | 4.31 |   |
| Subordinated      Notes Payable                        |   |    | 62,887    |     |   | 3,730   |   |   | 5.85 |   |   | 62,887 |   |   | 3,735 |   |   | 5.84 |   |   | 62,887 |   |   | 3,730 |   |   | 5.93 |   |
| Other      Long-Term Borrowings                        |   |    | 51,973    |     |   | 2,236   |   |   | 4.30 |   |   | 39,735 |   |   | 1,802 |   |   | 4.54 |   |   | 37,936 |   |   | 1,794 |   |   | 4.73 |   |
| Total      Interest Bearing Liabilities                |   |    | 1,768,245 |     |   | 16,842  |   |   | 0.95 | % |   | 1,822,569 |   |   | 34,000 |   |   | 1.87 | % |   | 1,715,901 |   |   | 53,082 |   |   | 3.09 | % |
| Noninterest      Bearing Deposits                      |   |    | 418,365   |     |   |    |   |   |   |   |   | 407,299 |   |   |   |   |   |   |   |   | 441,765 |   |   |   |   |   |   |   |
| Other      Liabilities                                 |   |    | 54,660    |     |   |    |   |   |   |   |   | 37,147 |   |   |   |   |   |   |   |   | 42,934 |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                 |   |    | 2,241,270 |     |   |    |   |   |   |   |   | 2,267,015 |   |   |   |   |   |   |   |   | 2,200,600 |   |   |   |   |   |   |   |
|                                                   |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHAREOWNERS'      EQUITY                               |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      SHAREOWNERS' EQUITY                         |   |    | 275,545   |     |   |    |   |   |   |   |   | 300,890 |   |   |   |   |   |   |   |   | 306,617 |   |   |   |   |   |   |   |
|                                                   |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES & EQUITY                    |   | $       | 2,516,815 |     |   |    |   |   |   |   | $ | 2,567,905 |   |   |   |   |   |   |   | $ | 2,507,217 |   |   |   |   |   |   |   |
|                                                   |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Rate Spread                              |   |    |      |     |   |    |   |   | 4.78 | % |   |   |   |   |   |   |   | 4.61 | % |   |   |   |   |   |   |   | 4.59 | % |
| Net      Interest Income                               |   |    |      |     | $      | 108,230 |   |   |   |   |   |   |   | $ | 111,348 |   |   |   |   |   |   |   | $ | 114,661 |   |   |   |   |
| Net      Interest Margin(3)                            |   |    |      |     |   |    |   |   | 4.96 | % |   |   |   |   |   |   |   | 4.96 | % |   |   |   |   |   |   |   | 5.25 | % |

| (1) | Average balances include      nonaccrual loans.  Interest income includes loan fees of $1.6      million, $2.3 million, and $3.0 million in 2009, 2008, and 2007,      respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Interest income includes the      effects of taxable equivalent adjustments using a 35% tax      rate. |
|-----|--------------------------------------------------------------------------------------------------------|

| (3) | Taxable equivalent net interest      income divided by average earningassets. |
|-----|-------------------------------------------------------------------------------|

----

|                                                   |   |  2009      Changes From 2008 |                                   | 2008      Changes From 2007 |
|--------------------------------------------------------|--------|-----------------------------------|----------------------------------------|-----------------------------|
|                                                   |   |                              |          Due to Average |                        |   |   |   |   |   |        Due to Average |
| (Taxable      Equivalent Basis - Dollars in Thousands) |   |  Total                       |                                   | Calendar(3)                 |   | Volume |   | Rate |   | Total |   |   | Calendar(3) |   |   | Volume |   |   | Rate |
| Earnings      Assets:                                  |   |                              |                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      Net of Unearned Interest(2)                | $      | (15,271                           | )                                      | $                           | (365 | )  | $ | 2,491 |   | $ | (17,397 | ) | $ | (21,978 | ) | $ | 426 |   | $ | (2,012 | ) |   | $ | (20,392 | )  |
| Investment      Securities:                            |   |                              |                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                |   | (1,191                            | )                                 |                        | (11 | )  |   | (483 | ) |   | (697 | ) |   | (1,061 | ) |   | 13 |   |   | (400 | ) |   |   | (674 | )  |
| Tax-Exempt(2)                                          |   | (787                              | )                                      |                        | (13 | )  |   | 439 |   |   | (1,213 | ) |   | 448 |   |   | 12 |   |   | 636 |   |   |   | (200 | )  |
| Funds      Sold                                        |   | (3,027                            | )                                 |                        | (8 | )  |   | (2,368 | )  |   | (651 | )  |   | 196 |   |   | 8 |   |   | 3,393 |   |   |   | (3,205 | ) |
|                                                   |   |                              |                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                  |   | (20,276                           | )                                 |                        | (397 | )  |   | 79 |   |   | (19,958 | )  |   | (22,395 | )  |   | 459 |   |   | 1,617 |   |   |   | (24,471 | )  |
|                                                   |   |                              |                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Bearing Liabilities:                     |   |                              |                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW      Accounts                                      |   | (6,415                            | )                                 |                        | (21 | )  |   | (316 | )  |   | (6,078 | )  |   | (3,293 | )  |   | 29 |   |   | 3,584 |   |   |   | (6,906 | )  |
| Money      Market Accounts                             |   | (3,954                            | )                                 |                        | (14 | )  |   | (753 | ) |   | (3,187 | )  |   | (8,425 | )  |   | 37 |   |   | (786 | ) |   |   | (7,676 | )  |
| Savings      Accounts                                  |   | (61                               | )                                 |                        | - |   |   | 4 |   |   | (65 | )  |   | (159 | )  |   | 1 |   |   | (8 | ) |   |   | (152 | )  |
| Time      Deposits                                     |   | (6,291                            | )                                 |                        | (40 | )  |   | (155 | ) |   | (6,096 | )  |   | (5,505 | )  |   | 55 |   |   | (2,099 | ) |   |   | (3,461 | )  |
| Short-Term      Borrowings                             |   | (866                              | )                                 |                        | (3 | )  |   | 227 |   |   | (1,090 | )  |   | (1,713 | ) |   | 8 |   |   | (185 | ) |   |   | (1,536 | )  |
| Subordinated      Notes Payable                        |   | (5                                | )                                 |                        | (10 | )  |   | - |   |   | 5 |   |   | 5 |   |   | 10 |   |   | - |   |   |   | (5 | )  |
| Long-Term      Borrowings                              |   | 434                               |                                   |                        | (5 | )  |   | 555 |   |   | (116 | ) |   | 8 |   |   | 5 |   |   | 85 |   |   |   | (82 | )  |
|                                                   |   |                              |                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                  |   | (17,158                           | )                                 |                        | (93 | )  |   | (438 | )  |   | (16,627 | )  |   | (19,082 | ) |   | 145 |   |   | 591 |   |   |   | (19,818 | )  |
|                                                   |   |                              |                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes      in Net Interest Income                    | $      | (3,118                            | )                                      | $                           | (304 | )  | $ | 517 |   | $ | (3,331 | )  | $ | (3,313 | ) | $ | 314 |   | $ | 1,026 |   |   | $ | (4,653 | ) |

| (1) | This table shows the change in      taxable equivalent net interest income for comparative periods based on      either changes in average volume or changes in average rates for earning      assets and interest bearing liabilities. Changes which are not solely due      to volume changes or solely due to rate changes have been attributed to      rate changes. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Interest income includes the      effects of taxable equivalent adjustments using a 35% tax rate to adjust      interest on tax-exempt loans and securities to a taxable equivalent      basis. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Reflects difference in 365 day      year (2009 and 2007) versus 366 day year  (2008). |
|-----|---------------------------------------------------------------------------------------|

----

|                                                        |   | For      the Years Ended December 31, |   |
|-------------------------------------------------------------|--------|---------------------------------------|--------|
| (Dollars      in Thousands)                                 |   | 2009                                  |   |   | 2008 |   |   | 2007 |   |
| Noninterest      Income:                                    |   |                                  |   |   |   |   |   |   |   |
| Service      Charges on Deposit Accounts                    |   | $                                     | 28,142 |   |   | $ | 27,742 |   |   | $ | 26,130 |   |
| Data      Processing Fees                                   |   |                                  | 3,628  |   |   |   | 3,435 |   |   |   | 3,133 |   |
| Asset      Management Fees                                  |   |                                  | 3,925  |   |   |   | 4,235 |   |   |   | 4,700 |   |
| Retail      Brokerage Fees                                  |   |                                  | 2,655  |   |   |   | 2,399 |   |   |   | 2,510 |   |
| Gain/(Loss)      on Sale/Call of Investment Securities      |   |                                  | 10     |   |   |   | 125 |   |   |   | 14 |   |
| Mortgage      Banking Revenues                              |   |                                  | 2,699  |   |   |   | 1,623 |   |   |   | 2,596 |   |
| Merchant      Fees(1)                                       |   |                                  | 2,359  |   |   |   | 5,548 |   |   |   | 7,257 |   |
| Interchange      Fees(1)                                    |   |                                  | 4,432  |   |   |   | 4,165 |   |   |   | 3,757 |   |
| Gain      on Sale of Portion of Merchant Services Portfolio |   |                                  | -      |   |   |   | 6,250 |   |   |   | - |   |
| ATM/Debit      Card Fees(1)                                 |   |                                  | 3,515  |   |   |   | 2,988 |   |   |   | 2,692 |   |
| Other                                                       |   |                                  | 6,026  |   |   |   | 8,530 |   |   |   | 6,511 |   |
| Total      Noninterest Income                               |   | $                                     | 57,391 |   |   | $ | 67,040 |   |   | $ | 59,300 |   |

----

----

|                           |   | For      the Years Ended December 31, |    |
|--------------------------------|--------|---------------------------------------|---------|
| (Dollars      in Thousands)    |   | 2009                                  |    |   | 2008 |   |   | 2007 |   |
| Noninterest      Expense:      |   |                                  |    |   |   |   |   |   |   |
| Salaries                       |   | $                                     | 50,494  |   |   | $ | 50,581 |   |   | $ | 49,206 |   |
| Associate      Benefits        |   |                                  | 14,573  |   |   |   | 11,250 |   |   |   | 11,073 |   |
| Total      Compensation        |   |                                  | 65,067  |   |   |   | 61,831 |   |   |   | 60,279 |   |
|                           |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Premises                       |   |                                  | 9,798   |   |   |   | 9,729 |   |   |   | 9,347 |   |
| Equipment                      |   |                                  | 9,096   |   |   |   | 9,902 |   |   |   | 9,890 |   |
| Total      Occupancy           |   |                                  | 18,894  |   |   |   | 19,631 |   |   |   | 19,237 |   |
|                           |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Legal      Fees                |   |                                  | 3,975   |   |   |   | 2,240 |   |   |   | 1,739 |   |
| Professional      Fees         |   |                                  | 4,501   |   |   |   | 4,083 |   |   |   | 3,855 |   |
| Processing      Services       |   |                                  | 3,591   |   |   |   | 3,921 |   |   |   | 3,278 |   |
| Advertising                    |   |                                  | 3,285   |   |   |   | 3,609 |   |   |   | 3,742 |   |
| Travel      and Entertainment  |   |                                  | 1,123   |   |   |   | 1,390 |   |   |   | 1,470 |   |
| Printing      and Supplies     |   |                                  | 1,882   |   |   |   | 1,977 |   |   |   | 2,124 |   |
| Telephone                      |   |                                  | 2,227   |   |   |   | 2,522 |   |   |   | 2,373 |   |
| Postage                        |   |                                  | 1,711   |   |   |   | 1,743 |   |   |   | 1,565 |   |
| FDIC      Insurance Fees       |   |                                  | 4,616   |   |   |   | 835 |   |   |   | 240 |   |
| Intangible      Amortization   |   |                                  | 4,042   |   |   |   | 5,685 |   |   |   | 5,834 |   |
| Interchange      Fees          |   |                                  | 1,929   |   |   |   | 4,577 |   |   |   | 6,118 |   |
| Other      Real Estate Owned   |   |                                  | 6,843   |   |   |   | 1,120 |   |   |   | 159 |   |
| Miscellaneous                  |   |                                  | 8,429   |   |   |   | 6,308 |   |   |   | 9,979 |   |
| Total      Other               |   |                                  | 48,154  |   |   |   | 40,010 |   |   |   | 42,476 |   |
|                           |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Total      Noninterest Expense |   | $                                     | 132,115 |   |   | $ | 121,472 |   |   | $ | 121,992 |   |

----

----

|                                                          |   | 2008      to |    |   | Percentage    |   |                        | Components      of               |   |
|---------------------------------------------------------------|--------|--------------|---------|--------|---------------|--------|-----------------------------|----------------------------------|--------|
|                                                          |   | 2009         |    |   | Of      Total |   |                        | Average Earning Assets |   |
| (Average      Balances – Dollars In Thousands)          |   | Change       |    |   | Change        |   |                        | 2009                             |   |   | 2008 |   |   | 2007 |   |
|                                                          |   |         |    |   |          |   |                        |                             |   |   |   |   |   |   |   |
| Loans:                                                        |   |         |    |   |          |   |                        |                             |   |   |   |   |   |   |   |
|   Commercial,      Financial, and Agricultural      |   |         | 2,988   |   |          |   |     5.0 |  %                          |   |   | 9.1 | % |   |   | 8.8 | % |   |   | 9.5 | % |
|   Real      Estate – Construction             |   |         | (7,797  | )      |          |   | (14.0                       | )%                               |   |   | 6.4 | % |   |   | 6.6 | % |   |   | 7.3 | % |
|   Real      Estate – Commercial               |   |         | 59,353  |   |          |   | 105.0                       |  %                          |   |   | 31.5 | % |   |   | 28.0 | % |   |   | 29.2 | % |
|   Real      Estate – Residential              |   |         | (7,421  | )      |          |   | (13.0                       | )%                               |   |   | 31.6 | % |   |   | 31.1 | % |   |   | 31.5 | % |
| Consumer                                                      |   |         | (3,550  | )      |          |   | (6.0                        | )%                               |   |   | 11.2 | % |   |   | 11.1 | % |   |   | 11.2 | % |
|     Total      Loans                      |   |         | 43,573  |   |          |   | 77.0                        |  %                          |   |   | 89.8 | % |   |   | 85.6 | % |   |   | 88.7 | % |
|                                                          |   |         |    |   |          |   |                        |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      Securities:                                   |   |         |    |   |          |   |                        |                             |   |   |   |   |   |   |   |   |   |   |   |   |
|   Taxable                                           |   |         | (9,501  | )      |          |   | (17.0                       | )%                               |   |   | 3.8 | % |   |   | 4.2 | % |   |   | 4.8 | % |
|   Tax-Exempt                                        |   |         | 8,673   |   |          |   | 16.0                        |  %                          |   |   | 4.9 | % |   |   | 4.3 | % |   |   | 3.8 | % |
|     Total      Securities                 |   |         | (828    | )      |          |   | (1.0                        | )%                               |   |   | 8.7 | % |   |   | 8.5 | % |   |   | 8.6 | % |
|                                                          |   |         |    |   |          |   |                        |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Funds      Sold                                               |   |         | (99,162 | )      |          |   | (176.0                      | )%                               |   |   | 1.5 | % |   |   | 5.9 | % |   |   | 2.7 | % |
|                                                          |   |         |    |   |          |   |                        |                             |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      Earning Assets |   | $            | (56,417 | )      |          |   | 100.0                       | %                                |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |

|                                        |   | As      of December 31, |      |
|---------------------------------------------|--------|-------------------------|-----------|
| (Dollars      in Thousands)                 |   | 2009                    |      |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Commercial,      Financial and Agricultural |   | $                       | 189,061   |   |   | $ | 206,230 |   |   | $ | 208,864 |   |   | $ | 229,327 |   |   | $ | 218,434 |   |
| Real      Estate - Construction             |   |                    | 111,249   |   |   |   | 141,973 |   |   |   | 142,248 |   |   |   | 179,072 |   |   |   | 160,914 |   |
| Real      Estate - Commercial               |   |                    | 716,791   |   |   |   | 656,959 |   |   |   | 634,920 |   |   |   | 643,885 |   |   |   | 718,741 |   |
| Real      Estate - Residential              |   |                    | 416,469   |   |   |   | 484,238 |   |   |   | 488,372 |   |   |   | 536,138 |   |   |   | 558,000 |   |
| Real      Estate – Home Equity        |   |                    | 246,722   |   |   |   | 218,500 |   |   |   | 192,428 |   |   |   | 173,597 |   |   |   | 165,336 |   |
| Consumer                                    |   |                    | 235,648   |   |   |   | 249,897 |   |   |   | 249,018 |   |   |   | 237,702 |   |   |   | 246,069 |   |
| Total      Loans, Net of Unearned Interest  |   | $                       | 1,915,940 |   |   | $ | 1,957,797 |   |   | $ | 1,915,850 |   |   | $ | 1,999,721 |   |   | $ | 2,067,494 |   |

----

|                                         |   | Maturity      Periods     |    |
|----------------------------------------------|--------|---------------------------|---------|
| (Dollars      in Thousands)                  |   | One      Yearor      Less |    |   | Over      OneThroughFive      Years |   |   | OverFiveYears |   |   | Total |   |
| Commercial,      Financial and Agricultural  |   | $                         | 90,321  |   |   | $ | 81,995 |   |   | $ | 16,745 |   |   | $ | 189,061 |   |
| Real      Estate – Construction        |   |                      | 97,860  |   |   |   | 10,581 |   |   |   | 2,808 |   |   |   | 111,249 |   |
| Real      Estate – Commercial Mortgage |   |                      | 159,873 |   |   |   | 130,602 |   |   |   | 426,316 |   |   |   | 716,791 |   |
| Real      Estate – Residential         |   |                      | 79,179  |   |   |   | 45,919 |   |   |   | 291,371 |   |   |   | 416,469 |   |
| Real      Estate – Home Equity         |   |                      | 618     |   |   |   | 7,328 |   |   |   | 238,776 |   |   |   | 246,722 |   |
| Consumer(1)                                  |   |                      | 23,967  |   |   |   | 168,062 |   |   |   | 43,619 |   |   |   | 235,648 |   |
| Total                                        |   | $                         | 451,818 |   |   | $ | 444,487 |   |   | $ | 1,019,635 |   |   | $ | 1,915,940 |   |
|                                         |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      with Fixed Rates                  |   | $                         | 158,165 |   |   | $ | 337,403 |   |   | $ | 166,920 |   |   | $ | 662,488 |   |
| Loans      with Floating or Adjustable Rates |   |                      | 293,653 |   |   |   | 107,084 |   |   |   | 852,715 |   |   |   | 1,253,452 |   |
| Total                                        |   | $                         | 451,818 |   |   | $ | 444,487 |   |   | $ | 1,019,635 |   |   | $ | 1,915,940 |   |

|  (1) | Demand loans and overdrafts are      reported in the category of one year or  less. |
|-----------|-------------------------------------------------------------------------------------|

----

|                                                                | For      the Years Ended December 31, |   |
|---------------------------------------------------------------------|---------------------------------------|--------|
| (Dollars      in Thousands)                                         | 2009                                  |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at Beginning of Year                                   | $                                     | 37,004 |   |   | $ | 18,066 |   |   | $ | 17,217 |   |   | $ | 17,410 |   |   | $ | 16,037 |   |
| Acquired      Reserves                                              |                                  | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,385 |   |
| Reclassification      of Unfunded Reserve to Other Liability        |                                  | 392    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   | - |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-Offs:                                                        |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,      Financial and Agricultural                         |                                  | 2,590  |   |   |   | 1,649 |   |   |   | 1,462 |   |   |   | 841 |   |   |   | 1,287 |   |
| Real      Estate - Construction                                     |                                  | 8,031  |   |   |   | 2,581 |   |   |   | 166 |   |   |   | - |   |   |   | - |   |
| Real      Estate - Commercial                                       |                                  | 4,417  |   |   |   | 1,499 |   |   |   | 709 |   |   |   | 346 |   |   |   | 255 |   |
| Real      Estate - Residential                                      |                                  | 13,491 |   |   |   | 3,787 |   |   |   | 407 |   |   |   | 260 |   |   |   | 311 |   |
| Real      Estate - Home Equity                                      |                                  | 1,632  |   |   |   | 267 |   |   |   | 1,022 |   |   |   | 20 |   |   |   | 10 |   |
| Consumer                                                            |                                  | 5,912  |   |   |   | 6,192 |   |   |   | 3,451 |   |   |   | 2,516 |   |   |   | 2,380 |   |
| Total      Charge-Offs                                              |                                  | 36,073 |   |   |   | 15,975 |   |   |   | 7,217 |   |   |   | 3,983 |   |   |   | 4,243 |   |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                         |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,      Financial and Agricultural                         |                                  | 567    |   |   |   | 331 |   |   |   | 174 |   |   |   | 246 |   |   |   | 180 |   |
| Real      Estate - Construction                                     |                                  | 540    |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Real      Estate - Commercial                                       |                                  | 53     |   |   |   | 15 |   |   |   | 14 |   |   |   | 17 |   |   |   | 3 |   |
| Real      Estate - Residential                                      |                                  | 525    |   |   |   | 161 |   |   |   | 34 |   |   |   | 11 |   |   |   | 37 |   |
| Real      Estate - Home Equity                                      |                                  | 5      |   |   |   | 1 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Consumer                                                            |                                  | 1,753  |   |   |   | 1,905 |   |   |   | 1,679 |   |   |   | 1,557 |   |   |   | 1,504 |   |
| Total      Recoveries                                               |                                  | 3,443  |   |   |   | 2,417 |   |   |   | 1,903 |   |   |   | 1,831 |   |   |   | 1,724 |   |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Charge-Offs                                                |                                  | 32,630 |   |   |   | 13,558 |   |   |   | 5,314 |   |   |   | 2,152 |   |   |   | 2,519 |   |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for Loan Losses                                      |                                  | 40,017 |   |   |   | 32,496 |   |   |   | 6,163 |   |   |   | 1,959 |   |   |   | 2,507 |   |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at End of Year                                         | $                                     | 43,999 |   |   | $ | 37,004 |   |   | $ | 18,066 |   |   | $ | 17,217 |   |   | $ | 17,410 |   |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of Net Charge-Offs to Average Loans Outstanding          |                                  | 1.66   | % |   |   | .71 | % |   |   | .27 | % |   |   | .11 | % |   |   | .13 | % |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for Loan Losses as a Percent of Loans at End of Year |                                  | 2.30   | % |   |   | 1.89 | % |   |   | .94 | % |   |   | .86 | % |   |   | .84 | % |
|                                                                |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for Loan Losses as a Multiple of Net Charge-Offs     |                                  | 1.35   | x |   |   | 2.73 | x |   |   | 3.40 | x |   |   | 8.00 | x |   |   | 6.91 | x |

----

|                                        | 2009            | 2008                                                       | 2007            | 2006                                                       | 2005            |                                                       |
|---------------------------------------------|-----------------|------------------------------------------------------------|-----------------|------------------------------------------------------------|-----------------|------------------------------------------------------------|
| (Dollars      in Thousands)                 | AllowanceAmount | Percentof      Loansin      EachCategoryTo      TotalLoans | AllowanceAmount | Percentof      Loansin      EachCategoryTo      TotalLoans | AllowanceAmount | Percentof      Loansin      EachCategoryTo      TotalLoans | AllowanceAmount | Percentof      Loansin      EachCategoryTo      TotalLoans | AllowanceAmount | Percentof      Loansin      EachCategoryTo      TotalLoans |   |
|                                        |            |                                                       |            |                                                       |            |                                                       |   |   |   |   |   |
| Commercial,      Financial and Agricultural | $               | 2,409                                                      | 9.9             | %                                                          | $               | 2,401                                                      | 10.5 | % | $ | 3,106 | 10.9 | % | $ | 3,900 | 11.5 | % | $ | 3,663 | 10.6 | % |
| Real      Estate:                           |            |                                                       |            |                                                       |            |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction                                |            | 12,117                                                     | 5.8             |                                                       |            | 8,973                                                      | 7.3 |   |   | 3,117 | 7.4 |   |   | 745 | 9.0 |   |   | 762 | 7.8 |   |
| Commercial                                  |            | 8,751                                                      | 37.4            |                                                       |            | 6,022                                                      | 33.6 |   |   | 4,372 | 33.1 |   |   | 5,996 | 32.2 |   |   | 6,352 | 34.7 |   |
| Residential                                 |            | 14,159                                                     | 21.7            |                                                       |            | 12,489                                                     | 24.7 |   |   | 3,733 | 35.6 |   |   | 1,050 | 35.5 |   |   | 1,019 | 35.0 |   |
| Home      Equity                            |            | 2,201                                                      | 12.9            |                                                       |            | 1,091                                                      | 11.2 |   |   | - | - |   |   | - | - |   |   | - | - |   |
| Consumer                                    |            | 3,457                                                      | 12.3            |                                                       |            | 5,055                                                      | 12.8 |   |   | 2,790 | 13.0 |   |   | 3,081 | 11.8 |   |   | 3,105 | 11.9 |   |
| Not      Allocated                          |            | 905                                                        | -               |                                                       |            | 973                                                        | - |   |   | 948 | - |   |   | 2,445 | - |   |   | 2,509 | - |   |
|                                        |            |                                                       |            |                                                       |            |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                       | $               | 43,999                                                     | 100.0           | %                                                          | $               | 37,004                                                     | 100.0 | % | $ | 18,066 | 100.0 | % | $ | 17,217 | 100.0 | % | $ | 17,410 | 100.0 | % |

----

|                                                    | As      of December 31, |    |
|---------------------------------------------------------|-------------------------|---------|
| (Dollars      in Thousands)                             | 2009                    |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                    |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccruing      Loans                                  | $                       | 86,274  |   |   | $ | 96,876 |   |   | $ | 25,119 |   |   | $ | 8,042 |   |   | $ | 5,258 |   |
| Troubled      Debt Restructurings                       |                    | 21,644  |   |   |   | 1,744 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      Nonperforming Loans                          |                    | 107,918 |   |   |   | 98,620 |   |   |   | 25,119 |   |   |   | 8,042 |   |   |   | 5,258 |   |
| Other      Real Estate Owned                            |                    | 36,134  |   |   |   | 9,222 |   |   |   | 3,043 |   |   |   | 689 |   |   |   | 292 |   |
| Total      Nonperforming Assets                         | $                       | 144,052 |   |   | $ | 107,842 |   |   | $ | 28,162 |   |   | $ | 8,731 |   |   | $ | 5,550 |   |
| Past      Due 90 Days or More (still accruing interest) | $                  | -       |   |   |  $ | 88 |   |   |  $ | 416 |   |   | $  | 135 |   |   | $ | 309 |   |
|                                                    |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming      Loans/Loans                          |                    | 5.63    | % |   |   | 5.04 | % |   |   | 1.31 | % |   |   | .40 | % |   |   | .25 | % |
| Nonperforming      Assets/Loans Plus Other Real Estate  |                    | 7.38    | % |   |   | 5.48 | % |   |   | 1.47 | % |   |   | .44 | % |   |   | .27 | % |
| Nonperforming      Assets/Capital(1)                    |                    | 46.19   | % |   |   | 34.15 | % |   |   | 9.06 | % |   |   | 2.62 | % |   |   | 1.72 | % |
| Allowance/Nonperforming      Loans                      |                    | 40.77   | % |   |   | 37.52 | % |   |   | 71.92 | % |   |   | 214.09 | % |   |   | 331.11 | % |

| (1) | For computation of this      percentage, "Capital" refers to shareowners' equity plus the allowance for      loan losses. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

----

----

|                                     |   | As      of December 31, |    |
|------------------------------------------|--------|-------------------------|---------|
|                                     |   | 2009                    |    | 2008 |   | 2007 |   |
| (Dollars      in Thousands)              |   | AmortizedCost           |    | MarketValue |   | Weighted(1)AverageYield |   | AmortizedCost |   | MarketValue |   | Weighted(1)AverageYield |   | AmortizedCost |   | MarketValue |   | Weighted(1)AverageYield |   |
|                                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      GOVERNMENTS                    |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due      in 1 year or less               |   | $                       | 11,034  |   | $ | 11,111 |   |   | 2.04 | % | $ | 18,695 |   | $ | 19,033 |   |   | 3.54 | % | $ | 36,441 |   | $ | 36,570 |   |   | 4.62 | % |
| Due      over 1 year through 5 years     |   |                    | 11,236  |   |   | 11,333 |   |   | 1.53 |   |   | 17,490 |   |   | 17,909 |   |   | 1.98 |   |   | 25,264 |   |   | 25,493 |   |   | 4.46 |   |
| Due      over 5 years through 10 years   |   |                    | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Due      over 10 years                   |   |                    | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| TOTAL                                    |   |                    | 22,270  |   |   | 22,444 |   |   | 1.78 |   |   | 36,185 |   |   | 36,942 |   |   | 2.79 |   |   | 61,705 |   |   | 62,063 |   |   | 4.56% |   |
|                                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STATES      & POLITICAL SUBDIVISIONS |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due      in 1 year or less               |   |                    | 58,987  |   |   | 59,477 |   |   | 3.90 |   |   | 39,277 |   |   | 39,581 |   |   | 5.02 |   |   | 25,675 |   |   | 25,697 |   |   | 5.19 |   |
| Due      over 1 year through 5 years     |   |                    | 47,468  |   |   | 48,073 |   |   | 2.49 |   |   | 61,093 |   |   | 61,981 |   |   | 4.55 |   |   | 64,339 |   |   | 64,304 |   |   | 5.38 |   |
| Due      over 5 years through 10 years   |   |                    | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Due      over 10 years                   |   |                    | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| TOTAL                                    |   |                    | 106,455 |   |   | 107,550 |   |   | 3.28 |   |   | 100,370 |   |   | 101,562 |   |   | 4.74 |   |   | 90,014 |   |   | 90,001 |   |   | 5.32% |   |
|                                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| MORTGAGE-BACKED      SECURITIES(2)       |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due      in 1 year or less               |   |                    | 8,400   |   |   | 8,506 |   |   | 3.91 |   |   | 1,258 |   |   | 1,267 |   |   | 3.84 |   |   | 4,125 |   |   | 4,117 |   |   | 4.23 |   |
| Due      over 1 year through 5 years     |   |                    | 24,742  |   |   | 25,398 |   |   | 4.01 |   |   | 30,803 |   |   | 30,907 |   |   | 4.44 |   |   | 15,043 |   |   | 15,070 |   |   | 4.89 |   |
| Due      over 5 years through 10 years   |   |                    | 233     |   |   | 239 |   |   | 4.44 |   |   | 1,420 |   |   | 1,426 |   |   | 5.29 |   |   | 7,166 |   |   | 7,100 |   |   | 5.21 |   |
| Due      over 10 years                   |   |                    | -       |   |   | - |   |   | - |   |   | 6,379 |   |   | 6,476 |   |   | 5.38 |   |   | - |   |   | - |   |   | - |   |
| TOTAL                                    |   |                    | 33,375  |   |   | 34,143 |   |   | 3.99 |   |   | 39,860 |   |   | 40,076 |   |   | 3.74 |   |   | 26,334 |   |   | 26,287 |   |   | 4.87% |   |
|                                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      SECURITIES                    |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due      in 1 year or less               |   |                    | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Due      over 1 year through 5 years     |   |                    | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Due      over 5 years through 10 years   |   |                    | -       |   |   | - |   |   | - |   |   | 1,000 |   |   | 1,107 |   |   | 5.00 |   |   | 1,000 |   |   | 1,061 |   |   | 5.00 |   |
| Due      over 10 years(3)                |   |                    | 12,536  |   |   | 12,536 |   |   | 6.18 |   |   | 11,882 |   |   | 11,882 |   |   | 5.94 |   |   | 11,307 |   |   | 11,307 |   |   | 5.90 |   |
| TOTAL                                    |   |                    | 12,536  |   |   | 12,536 |   |   | 6.18 |   |   | 12,882 |   |   | 12,989 |   |   | 5.87 |   |   | 12,307 |   |   | 12,368 |   |   | 5.90 |   |
|                                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      INVESTMENT SECURITIES         |   | $                       | 174,636 |   | $ | 176,673 |   |   | 3.43 | % | $ | 189,297 |   | $ | 191,569 |   |   | 4.26 | % | $ | 190,360 |   | $ | 190,719 |   |   | 5.08 | % |

| (1) | Weighted average yields are      calculated on the basis of the amortized cost of the security. The      weighted average yields on tax-exempt obligations are computed on a      taxable equivalent basis using a 35% tax  rate. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Based on weighted average      life. |
|-----|--------------------------------------|

| (3) | Federal Home Loan Bank Stock and      Federal Reserve Bank Stock are included in this category for weighted      average yield, but do not have stated  maturities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | As      of December 31, |   |
|----------------------------------------|--------|-------------------------|--------|
| (In      Years)                        |   | 2009                    |   |   | 2008 |   |   | 2007 |   |
| U.S.      Governments                  |   |                    | 0.95   |   |   |   | 1.15 |   |   |   | 1.09 |   |
| States      and Political Subdivisions |   |                    | 0.96   |   |   |   | 1.56 |   |   |   | 1.48 |   |
| Mortgage-Backed      Securities        |   |                    | 1.82   |   |   |   | 4.98 |   |   |   | 3.47 |   |
| Other      Securities                  |   |                    | -      |   |   |   | - |   |   |   | - |   |
| TOTAL                                  |   |                    | 1.13   |   |   |   | 2.24 |   |   |   | 1.63 |   |

----

|                                           | 2008      to |     | Percentage    |    | Components      of  |   |
|------------------------------------------------|--------------|----------|---------------|---------|---------------------|--------|
|                                           | 2009         |     | of      Total |    | Total      Deposits |   |
| (Average      Balances - Dollars in Thousands) | Change       |     | Change        |    | 2009                |   | 2008 |   | 2007 |   |
| Noninterest      Bearing Deposits              | $            | 11,066   |          | 15.0    | %                   | 21.0   | % | 19.7 | % | 22.2 | % |
| NOW      Accounts                              |         | (31,574) |          | (42.9)  |                | 35.7   |   | 36.0 |   | 28.0 |   |
| Money      Market Accounts                     |         | (53,747) |          | (73.0)  |                | 16.1   |   | 18.1 |   | 20.0 |   |
| Savings                                        |         | 5,169    |          | 7.0     |                | 6.1    |   | 5.6 |   | 6.0 |   |
| Time      Deposits                             |         | (4,550)  |          | (6.1)   |                | 21.1   |   | 20.6 |   | 23.9 |   |
| Total      Deposits                            | $            | (73,636) |          | (100.0) | %                   | 100.0  | % | 100.0 | % | 100.0 | % |

|                                |   | December      31, 2009            |    |
|-------------------------------------|--------|-----------------------------------|---------|
| (Dollars      in Thousands)         |   | Time      Certificates of Deposit |    |   | Percent |   |
| Three      months or less           |   | $                                 | 45,973  |   |   |   | 29.84 | % |
| Over      three through six months  |   |                              | 38,893  |   |   |   | 25.24 |   |
| Over      six through twelve months |   |                              | 50,779  |   |   |   | 32.96 |   |
| Over      twelve months             |   |                              | 18,420  |   |   |   | 11.96 |   |
| Total                               |   | $                                 | 154,065 |   |   |   | 100.00 | % |

----

----

| Changes      in Interest Rates | +300      bp     | +200      bp | +100      bp | -100      bp |   |
|--------------------------------|------------------|--------------|--------------|--------------|--------|
|                           |             |         |         |         |   |
| Policy      Limit              | +/-10.0%         | +/-7.5%      | +/-5.0%      | +/-5.0%      |   |
| December      31, 2009         |  -6.1%      | -3.4%        | -0.8%        |  0.7%   |   |
| December      31, 2008         |   1.4% |  1.6%   |  1.2%   | -1.4%        |   |

| Changes      in Interest Rates | +300      bp | +200      bp | +100      bp | -100      bp |   |
|--------------------------------|--------------|--------------|--------------|--------------|--------|
|                           |         |         |         |         |   |
| Policy      Limit              | +/-12.5%     | +/-10.0%     | +/-7.5%      | +/-7.5%      |   |
| December      31, 2009         | -4.3%        | 0.4%         | 2.7%         | -7.0%        |   |
| December      31, 2008         | 0.5%         | 2.0%         | 1.7%         | -3.8%        |   |

| (1) | Down      200 and 300 rate scenarios have been excluded due to the current      historically low interest rateenvironment. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

----

----

|                                         |   | Payments      Due By Period |    |
|----------------------------------------------|--------|-----------------------------|---------|
| (Dollars      in Thousands)                  |   | <      1 Yr              |    |   | >      1 – 3 Yrs |   |   | >      3 – 5 Yrs |   |   | >      5 Years |   |   | Total |   |
| Federal      Home Loan Bank Advances         |   | $                           | 3,277   |   |   | $ | 16,069 |   |   | $ | 15,597 |   |   | $ | 15,072 |   |   | $ | 50,015 |   |
| Subordinated      Notes Payable              |   |                        | -       |   |   |   | - |   |   |   | - |   |   |   | 62,887 |   |   |   | 62,887 |   |
| Operating      Lease Obligations             |   |                        | 1,268   |   |   |   | 1,138 |   |   |   | 862 |   |   |   | 4,739 |   |   |   | 8,007 |   |
| Time      Deposit Maturities                 |   |                        | 378,009 |   |   |   | 53,698 |   |   |   | 3,612 |   |   |   | - |   |   |   | 435,319 |   |
| Liability      for Unrecognized Tax Benefits |   |                        | 590     |   |   |   | 2,091 |   |   |   | 2,318 |   |   |   | 673 |   |   |   | 5,672 |   |
| Total      Contractual Cash Obligations      |   | $                           | 383,144 |   |   | $ | 72,996 |   |   | $ | 22,389 |   |   | $ | 83,371 |   |   | $ | 561,900 |   |

| (Dollars      in Thousands)                             | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------------------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|
| Common      Stock                                       |   | 170     |   |   |   | 171     |   |   |   | 172 |   |
| Additional      Paid-in Capital                         |   | 36,099  |   |   |   | 36,783  |   |   |   | 38,243 |   |
| Retained      Earnings                                  |   | 246,460 |   |   |   | 262,890 |   |   |   | 260,325 |   |
| Subtotal                                                |   | 282,729 |   |   |   | 299,844 |   |   |   | 298,740 |   |
| Accumulated      Other Comprehensive (Loss), Net of Tax |   | (14,830 | )      |   |   | (21,014 | )      |   |   | (6,065 | ) |
| Total      Shareowners' Equity                          | $      | 267,899 |   |   | $      | 278,830 |   |   | $ | 292,675 |   |

----

| ·   | Compliance      with state and federal laws andregulations; |
|--------------------|-------------------------------------------------------------|

| ·   | Our      capital position and our ability to meet our financial      obligations; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | Projected      earnings and asset levels; and |
|--------------------|-----------------------------------------------|

| ·   | The      ability of the Bank and us to funddividends. |
|--------------------|-------------------------------------------------------|

----

----

----

----

| ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET      RISK |
|----------|----------------------------------------------------------------|

----

| Item      8.   | Financial Statements and Supplementary      Data |
|--------------------------|--------------------------------------------------|

|                                                         |   | 2009   |      |   | 2008     |   |
|--------------------------------------------------------------|--------|--------|-----------|--------|----------|--------|
| (Dollars      in Thousands, Except Per Share Data)           |   | Fourth |      |   | Third(1) |   |   | Second |   |   | First |   |   | Fourth |   |   | Third |   |   | Second |   |   | First |   |
| Summary      of Operations:                                  |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Income                                         |   | $      | 29,756    |   |     | $      |                    30,787 |   |   | $ |  31,180 |   |   | $ |  31,053 |   |   | $ | 33,229 |   |   | $ | 34,654 |   |   | $ |  36,260 |   |   | $ | 38,723 |   |
| Interest      Expense                                        |   |   | 4,464     |   |     |   |         4,235 |   |   |   |         4,085 |   |   |   | 4,058 |   |   |   | 5,482 |   |   |   | 7,469 |   |   |   | 8,785 |   |   |   | 12,264 |   |
| Net      Interest Income                                     |   |   | 25,292    |   |     |   |        26,552 |   |   |   |        27,095 |   |   |   | 26,995 |   |   |   | 27,747 |   |   |   | 27,185 |   |   |   | 27,475 |   |   |   | 26,459 |   |
| Provision      for Loan Losses                               |   |   | 10,834    |   |     |   |          12,347 |   |   |   |          8,426 |   |   |   | 8,410 |   |   |   | 12,497 |   |   |   | 10,425 |   |   |   | 5,432 |   |   |   | 4,142 |   |
| Net      Interest Income AfterProvision      for Loan Losses |   |   | 14,458    |   |     |   |  14,205 |   |   |   |  18,669 |   |   |   |  18,585 |   |   |   | 15,250 |   |   |   | 16,760 |   |   |   |  22,043 |   |   |   | 22,317 |   |
| Noninterest      Income                                      |   |   | 14,411    |   |     |   | 14,304 |   |   |   | 14,634 |   |   |   | 14,042 |   |   |   | 13,311 |   |   |   | 20,212 |   |   |   | 15,718 |   |   |   | 17,799 |   |
| Noninterest      Expense                                     |   |   | 35,313    |   |     |   | 31,615 |   |   |   | 32,930 |   |   |   | 32,257 |   |   |   | 31,002 |   |   |   | 29,916 |   |   |   | 30,756 |   |   |   | 29,798 |   |
| (Loss)      Income Before  Income Taxes            |   |   | (6,444    | )      |     |   | (3,106 | ) |   |   |  373 |   |   |   |  370 |   |   |   | (2,441 | ) |   |   | 7,056 |   |   |   |  7,005 |   |   |   | 10,318 |   |
| Income      Tax (Benefit) Expense                            |   |   | (3,037    | )      |     |   | (1,618 | ) |   |   | (401 | ) |   |   | (280 | ) |   |   | (738 | ) |   |   | 2,218 |   |   |   | 2,195 |   |   |   | 3,038 |   |
| Net      (Loss) Income                                       |   | $      | (3,407    | )      |     | $      | (1,488 | ) |   | $ | 774 |   |   | $ | 650 |   |   | $ | (1,703 | ) |   | $ | 4,838 |   |   | $ | 4,810 |   |   | $ | 7,280 |   |
| Net      Interest Income (FTE)                               |   | $      | 25,845    |   |     | $      | 27,128 |   |   | $ | 27,679 |   |   | $ | 27,578 |   |   | $ | 28,387 |   |   | $ | 27,802 |   |   | $ | 28,081 |   |   | $ | 27,078 |   |
|                                                         |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per      Common Share:                                       |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (Loss) Income Basic                                 |   | $      | (0.20     | )      |     | $      | (0.08 | )  |   | $ | 0.04 |   |   | $ | 0.04 |   |   | $ | (0.10) |   |   | $ | 0.29 |   |   | $ | 0.28 |   |   | $ | 0.42 |   |
| Net      (Loss) Income Diluted                               |   |   | (0.20     | )      |     |   | (0.08 | )  |   |   | 0.04 |   |   |   | 0.04 |   |   |   | (0.10) |   |   |   | 0.29 |   |   |   | 0.28 |   |   |   | 0.42 |   |
| Dividends      Declared                                      |   |   | 0.190     |   |     |   | 0.190 |   |   |   | 0.190 |   |   |   | 0.190 |   |   |   | 0.190 |   |   |   | 0.185 |   |   |   | 0.185 |   |   |   | 0.185 |   |
| Diluted      Book Value                                      |   |   | 15.72     |   |     |   | 15.76 |   |   |   | 16.03 |   |   |   | 16.18 |   |   |   | 16.27 |   |   |   | 17.45 |   |   |   | 17.33 |   |   |   | 17.33 |   |
| Market      Price:                                           |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High                                                         |   |   | 14.34     |   |     |   | 17.10 |   |   |   | 17.35 |   |   |   | 27.31 |   |   |   | 33.32 |   |   |   | 34.50 |   |   |   | 30.19 |   |   |   | 29.99 |   |
| Low                                                          |   |   | 11.00     |   |     |   | 13.92 |   |   |   | 11.01 |   |   |   | 9.50 |   |   |   | 21.06 |   |   |   | 19.20 |   |   |   | 21.76 |   |   |   | 24.76 |   |
| Close                                                        |   |   | 13.84     |   |     |   | 14.20 |   |   |   | 16.85 |   |   |   | 11.46 |   |   |   | 27.24 |   |   |   | 31.35 |   |   |   | 21.76 |   |   |   | 29.00 |   |
|                                                         |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Average                                        |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances:                                                    |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                        |   | $      | 1,944,873 |   |     | $      | 1,964,984 |   |   | $ | 1,974,197 |   |   | $ | 1,964,086 |   |   | $ | 1,940,083 |   |   | $ | 1,915,008 |   |   | $ | 1,908,802 |   |   | $ | 1,909,574 |   |
| Earning      Assets                                          |   |   | 2,237,561 |   |     |   | 2,157,362 |   |   |   | 2,175,281 |   |   |   | 2,166,237 |   |   |   | 2,150,841 |   |   |   | 2,207,670 |   |   |   | 2,303,971 |   |   |   | 2,301,463 |   |
| Assets                                                       |   |   | 2,575,250 |   |     |   | 2,497,969 |   |   |   | 2,506,352 |   |   |   | 2,486,925 |   |   |   | 2,463,318 |   |   |   | 2,528,638 |   |   |   | 2,634,771 |   |   |   | 2,646,474 |   |
| Deposits                                                     |   |   | 2,090,008 |   |     |   | 1,950,170 |   |   |   | 1,971,190 |   |   |   | 1,957,354 |   |   |   | 1,945,866 |   |   |   | 2,030,684 |   |   |   | 2,140,545 |   |   |   | 2,148,874 |   |
| Shareowners’      Equity                               |   |   | 268,556   |   |     |   | 275,027 |   |   |   | 277,114 |   |   |   | 281,634 |   |   |   | 302,227 |   |   |   | 303,595 |   |   |   | 300,890 |   |   |   | 296,804 |   |
| Common      Equivalent Average Shares:                       |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   |   | 17,034    |   |     |   | 17,024 |   |   |   | 17,010 |   |   |   | 17,109 |   |   |   | 17,125 |   |   |   | 17,124 |   |   |   | 17,146 |   |   |   | 17,170 |   |
| Diluted                                                      |   |   | 17,035    |   |     |   | 17,025 |   |   |   | 17,010 |   |   |   | 17,131 |   |   |   | 17,135 |   |   |   | 17,128 |   |   |   | 17,147 |   |   |   | 17,178 |   |
|                                                         |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios:                                                      |   |   |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on Assets                                        |   |   | (0.52     | )%     |     |   | (0.24 | )% |   |   | 0.12 | % |   |   | 0.11 | % |   |   | (0.28 | )% |   |   | 0.76 | % |   |   | 0.73 | % |   |   | 1.11 | % |
| Return      on Equity                                        |   |   | (5.03     | )%     |     |   | (2.15 | )% |   |   | 1.12 | % |   |   | 0.94 | % |   |   | (2.24 | )% |   |   | 6.34 | % |   |   | 6.43 | % |   |   | 9.87 | % |
| Net      Interest Margin (FTE)                               |   |   | 4.59      | %      |     |   | 4.99 |  % |   |   | 5.11 | % |   |   | 5.16 | % |   |   | 5.26 | % |   |   | 5.01 | % |   |   | 4.90 | % |   |   | 4.73 | % |
| Efficiency      Ratio                                        |   |   | 85.21     | %      |     |   | 73.86 |  % |   |   | 75.44 | % |   |   | 75.07 | % |   |   | 71.21 | % |   |   | 59.27 | % |   |   | 66.89 | % |   |   | 63.15 | % |

----

| PAGE     |                                                           |
|----------|----------------------------------------------------------------|
|     |                                                           |
|  58 | Report of Independent      Registered Public Accounting Firm   |
|     |                                                           |
|  59 | Consolidated Statements of      Financial Condition            |
|     |                                                           |
|  60 | Consolidated Statements of      Operations                     |
|     |                                                           |
|  61 | Consolidated Statements of      Changes in Shareowners' Equity |
|     |                                                           |
|  62 | Consolidated Statements of      Cash Flows                     |
|     |                                                           |
| 63       | Notes to Consolidated      FinancialStatements                 |

----

----

|                                                                                                                                                                                        | As      of December 31, |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|-----------|
| (Dollars      in Thousands)                                                                                                                                                                 | 2009                    |      |   | 2008 |   |
| ASSETS                                                                                                                                                                                      |                    |      |   |   |   |
| Cash      and Due From Banks                                                                                                                                                                | $                       | 57,877    |   |   | $ | 88,143 |   |
| Federal      Funds Sold and Interest Bearing Deposits                                                                                                                                       |                    | 276,416   |   |   |   | 6,806 |   |
| Total      Cash and Cash Equivalents                                                                                                                                                        |                    | 334,293   |   |   |   | 94,949 |   |
|                                                                                                                                                                                        |                    |      |   |   |   |   |   |
| Investment      Securities, Available-for-Sale                                                                                                                                              |                    | 176,673   |   |   |   | 191,569 |   |
|                                                                                                                                                                                        |                    |      |   |   |   |   |   |
| Loans,      Net of Unearned Interest                                                                                                                                                        |                    | 1,915,940 |   |   |   | 1,957,797 |   |
| Allowance      for Loan Losses                                                                                                                                                              |                    | (43,999   | ) |   |   | (37,004 | ) |
| Loans,      Net                                                                                                                                                                             |                    | 1,871,941 |   |   |   | 1,920,793 |   |
|                                                                                                                                                                                        |                    |      |   |   |   |   |   |
| Premises      and Equipment, Net                                                                                                                                                            |                    | 115,439   |   |   |   | 106,433 |   |
| Goodwill                                                                                                                                                                                    |                    | 84,811    |   |   |   | 84,811 |   |
| Other      Intangible Assets                                                                                                                                                                |                    | 4,030     |   |   |   | 8,072 |   |
| Other      Assets                                                                                                                                                                           |                    | 121,137   |   |   |   | 82,072 |   |
| Total      Assets                                                                                                                                                                           | $                       | 2,708,324 |   |   | $ | 2,488,699 |   |
|                                                                                                                                                                                        |                    |      |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                 |                    |      |   |   |   |   |   |
| Deposits:                                                                                                                                                                                   |                    |      |   |   |   |   |   |
| Noninterest      Bearing Deposits                                                                                                                                                           | $                       | 427,791   |   |   | $ | 419,696 |   |
| Interest      Bearing Deposits                                                                                                                                                              |                    | 1,830,443 |   |   |   | 1,572,478 |   |
| Total      Deposits                                                                                                                                                                         |                    | 2,258,234 |   |   |   | 1,992,174 |   |
|                                                                                                                                                                                        |                    |      |   |   |   |   |   |
| Short-Term      Borrowings                                                                                                                                                                  |                    | 35,841    |   |   |   | 62,044 |   |
| Subordinated      Notes Payable                                                                                                                                                             |                    | 62,887    |   |   |   | 62,887 |   |
| Other      Long-Term Borrowings                                                                                                                                                             |                    | 49,380    |   |   |   | 51,470 |   |
| Other      Liabilities                                                                                                                                                                      |                    | 34,083    |   |   |   | 41,294 |   |
| Total      Liabilities                                                                                                                                                                      |                    | 2,440,425 |   |   |   | 2,209,869 |   |
|                                                                                                                                                                                        |                    |      |   |   |   |   |   |
| SHAREOWNERS'      EQUITY                                                                                                                                                                    |                    |      |   |   |   |   |   |
| Preferred      Stock, $.01 par value; 3,000,000 shares authorized; no shares issued and      outstanding                                                                                    |                    | -         |   |   |   | - |   |
| Common      Stock, $.01 par value; 90,000,000 shares authorized; 17,036,407 and      17,126,997 shares issued and outstanding at December 31, 2009 and December      31, 2008, respectively |                    | 170       |   |   |   | 171 |   |
| Additional      Paid-In Capital                                                                                                                                                             |                    | 36,099    |   |   |   | 36,783 |   |
| Retained      Earnings                                                                                                                                                                      |                    | 246,460   |   |   |   | 262,890 |   |
| Accumulated      Other Comprehensive Loss, Net of Tax                                                                                                                                       |                    | (14,830   | ) |   |   | (21,014 | ) |
| Total      Shareowners' Equity                                                                                                                                                              |                    | 267,899   |   |   |   | 278,830 |   |
| Total      Liabilities and Shareowners' Equity                                                                                                                                              | $                       | 2,708,324 |   |   | $ | 2,488,699 |   |

----

|                                                        | For      the Years Ended December 31, |    |
|-------------------------------------------------------------|---------------------------------------|---------|
| (Dollars      in Thousands, Except Per Share Data)          | 2009                                  |    |   | 2008 |   |   | 2007 |   |
| INTEREST      INCOME                                        |                                  |    |   |   |   |   |   |   |
| Interest      and Fees on Loans                             | $                                     | 117,324 |   |   | $ | 132,682 |   |   | $ | 154,567 |   |
| Investment      Securities:                                 |                                  |    |   |   |   |   |   |   |   |   |   |
| U.S.      Treasury                                          |                                  | 547     |   |   |   | 747 |   |   |   | 574 |   |
| U.S.      Government Agencies and Corporations              |                                  | 1,827   |   |   |   | 2,562 |   |   |   | 3,628 |   |
| States      and Political Subdivisions                      |                                  | 2,672   |   |   |   | 3,185 |   |   |   | 2,894 |   |
| Other      Securities                                       |                                  | 324     |   |   |   | 581 |   |   |   | 747 |   |
| Funds      Sold                                             |                                  | 82      |   |   |   | 3,109 |   |   |   | 2,913 |   |
| Total      Interest Income                                  |                                  | 122,776 |   |   |   | 142,866 |   |   |   | 165,323 |   |
|                                                        |                                  |    |   |   |   |   |   |   |   |   |   |
| INTEREST      EXPENSE                                       |                                  |    |   |   |   |   |   |   |   |   |   |
| Deposits                                                    |                                  | 10,585  |   |   |   | 27,306 |   |   |   | 44,687 |   |
| Short-Term      Borrowings                                  |                                  | 291     |   |   |   | 1,157 |   |   |   | 2,871 |   |
| Subordinated      Notes Payable                             |                                  | 3,730   |   |   |   | 3,735 |   |   |   | 3,730 |   |
| Other      Long-Term Borrowings                             |                                  | 2,236   |   |   |   | 1,802 |   |   |   | 1,794 |   |
| Total      Interest Expense                                 |                                  | 16,842  |   |   |   | 34,000 |   |   |   | 53,082 |   |
|                                                        |                                  |    |   |   |   |   |   |   |   |   |   |
| NET      INTEREST INCOME                                    |                                  | 105,934 |   |   |   | 108,866 |   |   |   | 112,241 |   |
| Provision      for Loan Losses                              |                                  | 40,017  |   |   |   | 32,496 |   |   |   | 6,163 |   |
| Net      Interest Income After Provision for Loan Losses    |                                  | 65,917  |   |   |   | 76,370 |   |   |   | 106,078 |   |
|                                                        |                                  |    |   |   |   |   |   |   |   |   |   |
| NONINTEREST      INCOME                                     |                                  |    |   |   |   |   |   |   |   |   |   |
| Service      Charges on Deposit Accounts                    |                                  | 28,142  |   |   |   | 27,742 |   |   |   | 26,130 |   |
| Data      Processing Fees                                   |                                  | 3,628   |   |   |   | 3,435 |   |   |   | 3,133 |   |
| Asset      Management Fees                                  |                                  | 3,925   |   |   |   | 4,235 |   |   |   | 4,700 |   |
| Securities      Transactions                                |                                  | 10      |   |   |   | 125 |   |   |   | 14 |   |
| Mortgage      Banking Revenues                              |                                  | 2,699   |   |   |   | 1,623 |   |   |   | 2,596 |   |
| Bank      Card Fees                                         |                                  | 10,306  |   |   |   | 12,701 |   |   |   | 13,706 |   |
| Gain      on Sale of Portion of Merchant Services Portfolio |                                  | -       |   |   |   | 6,250 |   |   |   | - |   |
| Other                                                       |                                  | 8,681   |   |   |   | 10,929 |   |   |   | 9,021 |   |
| Total      Noninterest Income                               |                                  | 57,391  |   |   |   | 67,040 |   |   |   | 59,300 |   |
|                                                        |                                  |    |   |   |   |   |   |   |   |   |   |
| NONINTEREST      EXPENSE                                    |                                  |    |   |   |   |   |   |   |   |   |   |
| Salaries      and Associate Benefits                        |                                  | 65,067  |   |   |   | 61,831 |   |   |   | 60,279 |   |
| Occupancy,      Net                                         |                                  | 9,798   |   |   |   | 9,729 |   |   |   | 9,347 |   |
| Furniture      and Equipment                                |                                  | 9,096   |   |   |   | 9,902 |   |   |   | 9,890 |   |
| Intangible      Amortization                                |                                  | 4,042   |   |   |   | 5,685 |   |   |   | 5,834 |   |
| Other                                                       |                                  | 44,112  |   |   |   | 34,325 |   |   |   | 36,642 |   |
| Total      Noninterest Expense                              |                                  | 132,115 |   |   |   | 121,472 |   |   |   | 121,992 |   |
|                                                        |                                  |    |   |   |   |   |   |   |   |   |   |
| (LOSS)      INCOME BEFORE INCOME TAXES                      |                                  | (8,807  | )  |   |   | 21,938 |   |   |   | 43,386 |   |
| Income      Tax (Benefit) Expense                           |                                  | (5,336  | ) |   |   | 6,713 |   |   |   | 13,703 |   |
|                                                        |                                  |    |   |   |   |   |   |   |   |   |   |
| NET      (LOSS) INCOME                                      | $                                     | (3,471  | ) |   | $ | 15,225 |   |   | $ | 29,683 |   |
| BASIC      NET (LOSS) INCOME PER SHARE                      | $                                     | (0.20   | ) |   | $ | 0.89 |   |   | $ | 1.66 |   |
| DILUTED      NET (LOSS) INCOME  PER SHARE         | $                                     | (0.20   | ) |   | $ | 0.89 |   |   | $ | 1.66 |   |
|                                                        |                                  |    |   |   |   |   |   |   |   |   |   |
| Average      Basic Common Shares Outstanding                |                                  | 17,044  |   |   |   | 17,141 |   |   |   | 17,909 |   |
| Average      Diluted Common Shares Outstanding              |                                  | 17,045  |   |   |   | 17,147 |   |   |   | 17,912 |   |

----

| (Dollars      in Thousands, Except Per Share Data)                                                                                                                                                 |   | Shares      Outstanding |   |   | Common      Stock |   |   | AdditionalPaid-InCapital |    |   | RetainedEarnings |   |    | Accumulated      OtherComprehensive(Loss)      Income,Net      of Taxes |   |   | Total       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-------------------|--------|--------|--------------------------|---------|--------|------------------|--------|---------|-------------------------------------------------------------------------|--------|--------|-------------|
| Balance,      December 31, 2006                                                                                                                                                                    |   |   18,518,398  |   |   | 185               |   |   |                     | 80,654  |   |             |   | 243,242 |                                                                    |   |   | (8,311      | ) |   |   | 315,770 |   |
| Comprehensive      Income:                                                                                                                                                                         |   |                    |   |   |              |   |   |                     |    |   |             |   |    |                                                                    |   |   |        |   |   |   |   |   |
| Net       Income                                                                                                                                                                              |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | 29,683  |                                                                    |   |   | -           |   |   |   | 29,683 |   |
| Ne     Net      Change in Unrealized Loss On Available-for-Sale Securities      (net      of tax)                                           |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | -       |                                                                    |   |   | 1,080       |   |   |   | 1,080  |   |
| Net       Change in Funded Status of Defined Pension Plan and SERP Plan               (net      of tax)            |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | -       |                                                                    |   |   | 1,166       |   |   |   | 1,166  |   |
| Total      Comprehensive Income                                                                                                                                                                    |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | -       |                                                                    |   |   | -           |   |   |   | 31,929 |   |
| Miscellaneous      – Other                                                                                                                                                                   |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | 223     |                                                                    |   |   | -           |   |   |   | 223 |   |
| Cash      Dividends ($.710 per share)                                                                                                                                                              |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | (12,823 | )                                                                       |   |   | -           |   |   |   | (12,823 | ) |
| Stock      Performance Plan Compensation                                                                                                                                                           |   |                    |   |   | -                 |   |   |                     | 265     |   |             |   | -       |                                                                    |   |   | -           |   |   |   | 265 |   |
| Issuance      of Common Stock                                                                                                                                                                      |   |  68,519            |   |   | 1                 |   |   |                     | 571     |   |             |   | -       |                                                                    |   |   | -           |   |   |   | 572 |   |
| Repurchase      of Common Stock                                                                                                                                                                    |   | (1,404,364              | )      |   | (14               | )      |   |                     | (43,247 | )      |             |   | -       |                                                                    |   |   | -           |   |   |   | (43,261 | ) |
| Balance,      December 31, 2007                                                                                                                                                                    |   |  17,182,553        |   |   | 172               |   |   |                     | 38,243  |   |             |   | 260,325 |                                                                    |   |   | (6,065      | ) |   |   | 292,675 |   |
| Cumulative      Effect of Adoption of EITF 06-4                                                                                                                                                    |   |                    |   |   |              |   |   |                     |    |   |             |   | (30     | )                                                                       |   |   |        |   |   |   | (30 | ) |
| ComComprehensive      Income:                                                                                                                                                                      |   |                    |   |   |              |   |   |                     |    |   |             |   |    |                                                                    |   |   |        |   |   |   |   |   |
| Net       Net Income                                                                                                                                                                          |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | 15,225  |                                                                    |   |   | -           |   |   |   | 15,225 |   |
| Net   Change      in Unrealized Gain On Available-for-Sale Securities      (net      of tax)                                                          |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | -       |                                                                    |   |   | 1,230       |   |   |   |  1,230 |   |
| Net   Change      in Funded Status of Defined Pension Plan and SERP Plan               (net      of tax) |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | -       |                                                                    |   |   | (16,179     | ) |   |   | (16,179 | ) |
| Total      Comprehensive Income                                                                                                                                                                    |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | -       |                                                                    |   |   | -           |   |   |   | 276 |   |
| Cash      Dividends ($.7450 per share)                                                                                                                                                             |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | (12,630 | )                                                                       |   |   | -           |   |   |   | (12,630 | ) |
| Stock      Performance Plan Compensation                                                                                                                                                           |   |                    |   |   | -                 |   |   |                     | 62      |   |             |   | -       |                                                                    |   |   | -           |   |   |   | 62 |   |
| Issuance      of Common Stock                                                                                                                                                                      |   |  34,485            |   |   |              |   |   |                     | 891     |   |             |   | -       |                                                                    |   |   | -           |   |   |   | 891 |   |
| Repurchase      of Common Stock                                                                                                                                                                    |   | (90,041                 | )      |   | (1                | )      |   |                     | (2,413  | )      |             |   | -       |                                                                    |   |   | -           |   |   |   | (2,414 | ) |
|              Balance, December 31, 2008                                                                                                                                   |   | 17,126,997              |   |   | 171               |   |   |                     | 36,783  |   |             |   | 262,890 |                                                                    |   |   | (21,014     | ) |   |   | 278,830 |   |
| Co    Comprehensive      Income:                                                                                                                                               |   |                    |   |   |              |   |   |                     |    |   |             |   |    |                                                                    |   |   |        |   |   |   |   |   |
| Ne         Net Loss                                                                                                                                                                 |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | (3,471  | )                                                                  |   |   | -           |   |   |   | (3,471 | )  |
| Net   Change      in Unrealized Gain on  Available-for-SaleSecurities      (net      of tax)                                                |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | -       |                                                                    |   |   | (888        | )  |   |   |  (888 | )  |
| Net   Change      in Funded Status of Defined Pension Plan and SERP Plan (net of      tax)                                                                                          |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | -       |                                                                    |   |   |  7,072 |   |   |   | 7,072 |   |
| Total      Comprehensive Income                                                                                                                                                                    |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | -       |                                                                    |   |   | -           |   |   |   | 2,713 |   |
| Cash      Dividends ($.7600 per share)                                                                                                                                                             |   |                    |   |   | -                 |   |   |                     | -       |   |             |   | (12,959 | )                                                                       |   |   | -           |   |   |   | (12,959 | ) |
| Stock      Performance Plan Compensation                                                                                                                                                           |   |                    |   |   | -                 |   |   |                     | (176    | )      |             |   | -       |                                                                    |   |   | -           |   |   |   | (176 | )  |
| Issuance      of Common Stock                                                                                                                                                                      |   |  55,298            |   |   |              |   |   |                     | 1,052   |   |             |   | -       |                                                                    |   |   | -           |   |   |   |  1,052 |   |
| Repurchase      of Common Stock                                                                                                                                                                    |   | (145,888                | )      |   | (1                | )      |   |                     | (1,560  | )      |             |   | -       |                                                                    |   |   | -           |   |   |   | (1,561 | ) |
| Balance,      December 31, 2009                                                                                                                                                                    |   | 17,036,407              |   | $      | 170               |   |   | $                        | 36,099  |   |             | $      | 246,460 |                                                                    |   | $      | (14,830     | ) |   | $ | 267,899 |   |

----

|                                                                                             | For      the Years Ended December 31, |     |
|--------------------------------------------------------------------------------------------------|---------------------------------------|----------|
| (Dollars      in Thousands)                                                                      | 2009                                  |     |   | 2008 |   |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                       |                                  |     |   |   |   |   |   |   |
| Net      (Loss) Income                                                                           | $                                     | (3,471   | ) |   | $ | 15,225 |   |   | $ | 29,683 |   |
| A      Adjustments to Reconcile Net (Loss) Income to Cash Provided by Operating      Activities: |                                  |     |   |   |   |   |   |   |   |   |   |
| Provision      for Loan Losses                                                                   |                                  | 40,017   |   |   |   | 32,496 |   |   |   | 6,163 |   |
| Depreciation                                                                                     |                                  | 6,680    |   |   |   | 6,798 |   |   |   | 6,338 |   |
| Net      Securities Amortization                                                                 |                                  | 2,364    |   |   |   | 990 |   |   |   | 279 |   |
| Amortization      of Intangible Assets                                                           |                                  | 4,042    |   |   |   | 5,685 |   |   |   | 5,834 |   |
| (Gain)      on Securities Transactions                                                           |                                  | (10      | ) |   |   | (125 | ) |   |   | (14 | ) |
| Loss      on Impaired Security                                                                   |                                  | 300      |   |   |   | - |   |   |   | - |   |
| Origination  of      Loans Held-for-Sale                                               |                                  | (158,193 | ) |   |   | (106,340 | ) |   |   | (158,390 | ) |
| Proceeds      From Sales of Loans Held-for-Sale                                                  |                                  | 156,865  |   |   |   | 108,218 |   |   |   | 162,835 |   |
| Net      Gain From Sales of Loans Held-for Sale                                                  |                                  | (2,699   | ) |   |   | (1,623 | ) |   |   | (2,596 | ) |
| Gain      on Sale of Portion of Merchant Services Portfolio                                      |                                  | -        |   |   |   | (6,250 | ) |   |   | - |   |
| Proceeds      From Sale of Portion of Merchant Services Portfolio                                |                                  | -        |   |   |   | 6,250 |   |   |   | - |   |
| Non-Cash      Compensation                                                                       |                                  | -        |   |   |   | 62 |   |   |   | 265 |   |
| Net      Decrease (Increase) in Deferred Income Taxes                                            |                                  | 2,911    |   |   |   | (15,235 | ) |   |   | 1,328 |   |
| Net      Decrease (Increase) in Other Assets                                                     |                                  | 5,929    |   |   |   | (1,371 | ) |   |   | (12,894 | ) |
| Net      (Decrease) Increase in Other Liabilities                                                |                                  | (4,176   | ) |   |   | 2,200 |   |   |   | 8,115 |   |
| Net      Cash Provided by Operating Activities                                                   |                                  | 50,559   |   |   |   | 46,980 |   |   |   | 46,946 |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                       |                                  |     |   |   |   |   |   |   |   |   |   |
| Securities      Available-for-Sale:                                                              |                                  |     |   |   |   |   |   |   |   |   |   |
| Purchases                                                                                        |                                  | (66,794  | ) |   |   | (89,059 | ) |   |   | (56,289 | ) |
| Sales                                                                                            |                                  | 2,806    |   |   |   | 10,490 |   |   |   | - |   |
| Payments,      Maturities, and Calls                                                             |                                  | 75,295   |   |   |   | 78,767 |   |   |   | 58,894 |   |
| Net      (Increase) Decrease in Loans                                                            |                                  | (31,135  | ) |   |   | (66,635 | ) |   |   | 74,058 |   |
| Purchase      of Premises & Equipment                                                        |                                  | (15,688  | ) |   |   | (14,626 | ) |   |   | (18,613 | ) |
| Proceeds      From Sales of Premises & Equipment                                             |                                  | 2        |   |   |   | 6 |   |   |   | 203 |   |
| Net      Cash (Used In) Provided By Investing Activities                                         |                                  | (35,514  | ) |   |   | (81,057 | ) |   |   | 58,253 |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                       |                                  |     |   |   |   |   |   |   |   |   |   |
| Net      Increase (Decrease) in Deposits                                                         |                                  | 266,061  |   |   |   | (150,171 | ) |   |   | 60,690 |   |
| Net      (Decrease) Increase in Short-Term Borrowings                                            |                                  | (26,486  | ) |   |   | 8,925 |   |   |   | (12,263 | ) |
| Increase      (Decrease) in Other Long-Term Borrowings                                           |                                  | 2,029    |   |   |   | 30,600 |   |   |   | (10,618 | ) |
| Repayment      of Other Long-Term Borrowings                                                     |                                  | (3,837   | ) |   |   | (5,872 | ) |   |   | (5,363 | ) |
| Dividends      Paid                                                                              |                                  | (12,959  | ) |   |   | (12,630 | ) |   |   | (12,823 | ) |
| Repurchase      of Common Stock                                                                  |                                  | (1,561   | )  |   |   |  (2,414 | ) |   |   | (43,261 | ) |
| Issuance      of Common Stock                                                                    |                                  | 1,052    |   |   |   | 891 |   |   |   | 572 |   |
| Net      Cash Provided by (Used In) Financing Activities                                         |                                  | 224,299  |   |   |   | (130,671 | ) |   |   | (23,066 | ) |
|                                                                                             |                                  |     |   |   |   |   |   |   |   |   |   |
| NET      CHANGE IN CASH AND CASH EQUIVALENTS                                                     |                                  | 239,344  |   |   |   | (164,748 | ) |   |   | 82,133 |   |
|                                                                                             |                                  |     |   |   |   |   |   |   |   |   |   |
| Cash      and Cash Equivalents at Beginning of Year                                              |                                  | 94,949   |   |   |   | 259,697 |   |   |   | 177,564 |   |
| Cash      and Cash Equivalents at End of Year                                                    | $                                     | 334,293  |   |   | $ | 94,949 |   |   | $ | 259,697 |   |
|                                                                                             |                                  |     |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES:                                                                   |                                  |     |   |   |   |   |   |   |   |   |   |
|   Interest      Paid on Deposits                                                       | $                                     | 10,586   |   |   | $ | 29,729 |   |   | $ | 44,510 |   |
|   Interest      Paid on Debt                                                           | $                                     | 6,273    |   |   | $ | 6,658 |   |   | $ | 8,463 |   |
|   Taxes      Paid                                                                      | $                                     | 7,218    |   |   | $ | 16,998 |   |   | $ | 12,431 |   |
|   Loans      Transferred to Other Real Estate                                          | $                                     | 43,997   |   |   | $ | 10,874 |   |   | $ | 3,494 |   |
|   Iss   Issuance      of Common Stock as Non-Cash Compensation          | $                                     | 155      |   |   | $ | - |   |   | $ | 1,160 |   |
|   Transfer      of Current Portion of Long-Term Borrowings                             | $                                     | 637      |   |   | $ | 176 |   |   | $ | 12,318 |   |

----

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----

----

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|                                           | 2009          |                                  |
|------------------------------------------------|---------------|---------------------------------------|
| (Dollars      in Thousands)                    | AmortizedCost |                                  |   | UnrealizedGains |   |   | UnrealizedLosses |   |   | MarketValue |   |
| U.S.      Treasury                             | $             |     22,270        |   |   | $ |      174 |   |   | $ | - |   |   | $ |        22,444 |   |
| U.S.      Government Agencies and Corporations |          |       - |   |   |   |      - |   |   |   | - |   |   |   |         - |   |
| States      and Political Subdivisions         |          |   106,455                   |   |   |   | 1,166 |   |   |   | 71 |   |   |   |      107,550 |   |
| Mortgage-Backed      Securities                |          |     33,375        |   |   |   | 798 |   |   |   | 30 |   |   |   |        34,143 |   |
| Other      Securities(1)                       |          |     13,236        |   |   |   | - |   |   |   | 700 |   |   |   |        12,536 |   |
| Total      Investment Securities               | $             |   175,336                   |   |   | $ | 2,138 |   |   | $ | 801 |   |   | $ | 176,673 |   |

|                                           | 2008          |                                      |
|------------------------------------------------|---------------|-------------------------------------------|
| (Dollars      in Thousands)                    | AmortizedCost |                                      |   | UnrealizedGains |   |   | UnrealizedLosses |   |   | MarketValue |   |
| U.S.      Treasury                             | $             |     29,094            |   |   | $ |      577 |   |   | $ | - |   |   | $ |        29,671 |   |
| U.S.      Government Agencies and Corporations |          |       7,091 |   |   |   |      180 |   |   |   | - |   |   |   |          7,271 |   |
| States      and Political Subdivisions         |          |   100,370                       |   |   |   | 1,224 |   |   |   | 32 |   |   |   |      101,562 |   |
| Mortgage-Backed      Securities                |          |     39,860            |   |   |   | 332 |   |   |   | 116 |   |   |   |        40,076 |   |
| Other      Securities(1)                       |          |     12,882            |   |   |   | 107 |   |   |   | - |   |   |   |        12,989 |   |
| Total      Investment Securities               | $             |   189,297                       |   |   | $ | 2,420 |   |   | $ | 148 |   |   | $ | 191,569 |   |

| (1) | Includes Federal Home      Loan Bank (“FHLB”) and Federal Reserve Bank stock recorded at cost of      $7.7 million and $4.8 million, respectively, at December 31, 2009 and $7.0      million and $4.8 million, respectively, at December 31,      2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars      in Thousands) | Year       |   | TotalProceeds |   |   | GrossRealized      Gains |   |   | GrossRealized      Losses |   |
|-----------------------------|------------|--------|---------------|--------|--------|--------------------------|--------|--------|---------------------------|--------|
|                        |  2009 |   | $             | 5,316  |   |                     | $      | 10     |                      |   | $ | - |   |
|                        |  2008 |   | $             | 30,517 |   |                     | $      | 126    |                      |   | $ |   (1 | )  |
|                        |  2007 |   | $             | 5,393  |   |                     | $      | 14     |                      |   | $ | - |   |

| (Dollars      in Thousands)           |   | Amortized      Cost                                             |   | Market      Value |
|---------------------------------------|--------|-----------------------------------------------------------------|--------|-------------------|
| Due      in one year or less          | $      |    78,421                                        |   |  $           |               79,095 |   |
| Due      after one through five years |   |       83,446                      |   |              |             84,803 |   |
| Due      after five through ten years |   |           233 |   |              |                 239 |   |
| Due      over ten years               |   |           -   |   |              |                 - |   |
| No      Maturity                      |   |         12,536          |   |              |               12,536 |   |
| Total      Investment Securities      | $      |    174,636                                       |   |  $           |        176,673 |   |

----

|                                                                  |                         |   | December      31, 2009          |   |        |   |
|-----------------------------------------------------------------------|------------------------------|--------|---------------------------------|--------|-------------|--------|
|                                                                  | Less      Than12      Months |   | Greater      Than12      Months |   | Total       |   |
| (Dollars      in Thousands)                                           | MarketValue                  |   | UnrealizedLosses                |   | MarketValue |   | UnrealizedLosses |   | MarketValue |   | UnrealizedLosses |   |
| U.S.      Treasury                                                    |                         | $      | -                               |   |        | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|     U.S.Government      Agencies and Corporations |                         |   | -                               |   |        |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     States      and Political Subdivisions        |                         |   | 3,107                           |   |        |   | 71 |   |   |   | - |   |   |   | - |   |   |   | 3,107 |   |   |   | 71 |   |
|     Mortgage-Backed      Securities          |                         |   |  5,381                     |   |        |   |  30 |   |   |   |  - |   |   |   |  - |   |   |   | 5,381 |   |   |   | 5,381 |   |
|     Other      Securities                         |                         |   | 700                             |   |        |   | 700 |   |   |   | - |   |   |   | - |   |   |   | 700 |   |   |   | 700 |   |
|     Total      Investment Securities              |                         | $      | 9,188                           |   |        | $      | 801 |   |   | $ |   |   |   | $ |   |   |   | $ | 9,188 |   |   | $ | 801 |   |

|                                                |                         |   | December      31, 2008          |   |        |   |
|-----------------------------------------------------|------------------------------|--------|---------------------------------|--------|-------------|--------|
|                                                | Less      Than12      Months |   | Greater      Than12      Months |   | Total       |   |
| (Dollars      in Thousands)                         | MarketValue                  |   | UnrealizedLosses                |   | MarketValue |   | UnrealizedLosses |   | MarketValue |   | UnrealizedLosses |   |
| U.S.      Treasury                                  |                         | $      | -                               |   |        | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| U.S. Government      Agencies and Corporations |                         |   | -                               |   |        |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| States      and Political Subdivisions              |                         |   | 2,652                           |   |        |   | 32 |   |   |   | - |   |   |   | - |   |   |   | 2,652 |   |   |   | 32 |   |
| Mortgage-Backed      Securities                     |                         |   | 14,149                          |   |        |   | 116 |   |   |   | - |   |   |   | - |   |   |   | 14,149 |   |   |   | 116 |   |
| Total      Investment Securities                    |                         | $      | 16,801                          |   |        | $      | 148 |   |   | $ |   |   |   | $ |   |   |   | $ | 16,801 |   |   | $ | 148 |   |

----

| (Dollars      in Thousands)                  | 2009   |      | 2008   |   |
|----------------------------------------------|--------|-----------|--------|--------|
| Commercial,      Financial and Agricultural  | $      | 189,061   |   | $      | 206,230 |   |
| Real      Estate - Construction              |   | 111,249   |   |   | 141,973 |   |
| Real      Estate - Commercial Mortgage       |   | 716,791   |   |   | 656,959 |   |
| Real      Estate -  Residential(1) |   | 408,578   |   |   | 481,034 |   |
| Real      Estate - Home Equity               |   | 246,722   |   |   | 218,500 |   |
| Real      Estate - Loans Held-for-Sale       |   | 7,891     |   |   | 3,204 |   |
| Consumer                                     |   | 235,648   |   |   | 249,897 |   |
| Total      Loans, Net of Unearned Interest   | $      | 1,915,940 |   | $      | 1,957,797 |   |

| (1) | Includes      loans in process with outstanding balances of $10.7 million and $13.9      million for 2009 and 2008,respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (Dollars      in Thousands)                                  | 2009   |    |   | 2008   |   |    | 2007   |   |
|--------------------------------------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|
| Balance,      Beginning of Year                              | $      | 37,004  |   |   | $      | 18,066  |   |   | $ | 17,217 |   |
| Provision      for Loan Losses                               |   | 40,017  |   |   |   | 32,496  |   |   |   | 6,163 |   |
| Recoveries      on Loans Previously Charged-Off              |   | 3,442   |   |   |   | 2,417   |   |   |   | 1,903 |   |
| Loans      Charged-Off                                       |   | (36,072 | )      |   |   | (15,975 | )      |   |   | (7,217 | ) |
| Reclassification      of Unfunded Reserve to Other Liability |   | (392    | )      |   |   | -       |   |   |   | - |   |
| Balance,      End of Year                                    | $      | 43,999  |   |   | $      | 37,004  |   |   | $ | 18,066 |   |

----

|                                  | 2009             |   | 2008               |   |
|---------------------------------------|------------------|--------|--------------------|--------|
| (Dollars      in Thousands)           | ValuationBalance |   | ValuationAllowance |   | ValuationBalance |   | ValuationAllowance |   |
| Impaired      Loans:                  |             |   |               |   |   |   |   |   |   |   |   |   |
| With      Related Credit Allowance    |             | $      | 83,986             |   |   | $ | 21,066 |   |   | $ | 68,705 |   |   | $ | 15,901 |   |
| Without      Related Credit Allowance |             |   | 27,926             |   |   |   | - |   |   |   | 37,723 |   |   |   | - |   |

| (Dollars      in Thousands)                        | 2009   |    | 2008   |   | 2007   |   |
|----------------------------------------------------|--------|---------|--------|--------|--------|--------|
| Average      Recorded Investment in Impaired Loans | $      | 120,905 |   | $      | 80,827 |   | $ | 23,922 |   |
|                                               |   |    |   |   |   |   |   |   |   |
| Interest      Income on Impaired Loans             |   |    |   |   |   |   |   |   |   |
| Recognized                                         | $      | 3,421   |   | $      | 1,708  |   | $ | 761 |   |
| Collected      in Cash                             |   | 3,421   |   |   | 1,708  |   |   | 761 |   |

|                                  | 2009        |    |                    | 2008   |   |
|---------------------------------------|-------------|---------|-------------------------|--------|--------|
| (Dollars      in Thousands)           | GrossAmount |    | AccumulatedAmortization |   |   | GrossAmount |   |   | AccumulatedAmortization |   |
| Core      Deposits Intangibles        | $           | 47,176  |                    | $      | 43,943 |   |   | $ | 47,176 |   |   | $ | 40,092 |   |
| Goodwill                              |        | 84,811  |                    |   | -      |   |   |   | 84,811 |   |   |   | - |   |
| Customer      Relationship Intangible |        | 1,867   |                    |   | 1,070  |   |   |   | 1,867 |   |   |   | 879 |   |
| Total      Intangible Assets          | $           | 133,854 |                    | $      | 45,013 |   |   | $ | 133,854 |   |   | $ | 40,971 |   |

----

| (Dollars      in Thousands)      |   | 2009   |    |   | 2008   |   |
|----------------------------------|--------|--------|---------|--------|--------|--------|
| Land                             |   | $      | 24,408  |   |   | $      | 24,289 |   |
| Buildings                        |   |   | 111,649 |   |   |   | 100,179 |   |
| Fixtures      and Equipment      |   |   | 54,493  |   |   |   | 56,493 |   |
| Total                            |   |   | 190,550 |   |   |   | 180,961 |   |
| Accumulated      Depreciation    |   |   | (75,111 | )      |   |   | (74,528 | ) |
| Premises      and Equipment, Net |   | $      | 115,439 |   |   | $      | 106,433 |   |

| (Dollars      in Thousands) |   | 2009   |      |   | 2008   |   |
|-----------------------------|--------|--------|-----------|--------|--------|--------|
| NOW      Accounts           |   | $      | 899,649   |   |   | $      | 758,976 |   |
| Money      Market Accounts  |   |   | 373,105   |   |   |   | 324,646 |   |
| Savings      Accounts       |   |   | 122,370   |   |   |   | 115,261 |   |
| Time      Deposits          |   |   | 435,319   |   |   |   | 373,595 |   |
| Total                       |   | $      | 1,830,443 |   |   | $      | 1,572,478 |   |

| (Dollars      in Thousands) |   |   |    |
|-----------------------------|--------|--------|---------|
| 2010                        |   | $      | 378,009 |   |
| 2011                        |   |   | 41,009  |   |
| 2012                        |   |   | 12,689  |   |
| 2013                        |   |   | 2,251   |   |
| 2014      and thereafter    |   |   | 1,361   |   |
| Total                       |   | $      | 435,319 |   |

| (Dollars      in Thousands)      |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| NOW      Accounts                |   | $      | 1,039  |   |   | $      | 7,454  |   |   | $ | 10,748 |   |
| Money      Market Accounts       |   |   | 1,288  |   |   |   | 5,242  |   |   |   | 13,666 |   |
| Savings      Accounts            |   |   | 60     |   |   |   | 121    |   |   |   | 280 |   |
| Time      Deposits < $100,000 |   |   | 5,362  |   |   |   | 10,199 |   |   |   | 13,990 |   |
| Time      Deposits > $100,000 |   |   | 2,836  |   |   |   | 4,290  |   |   |   | 6,003 |   |
| Total                            |   | $      | 10,585 |   |   | $      | 27,306 |   |   | $ | 44,687 |   |

----

| (Dollars      in Thousands)                     |   | FederalFundsPurchased |   |   | SecuritiesSold      UnderRepurchaseAgreements(1) |   |   | OtherShort-TermBorrowings |   |   |
|-------------------------------------------------|--------|-----------------------|--------|--------|--------------------------------------------------|--------|--------|---------------------------|--------|--------|
| 2009                                            |   |                  |   |   |                                             |   |   |                      |   |   |
| Balance      at December 31,                    |   | $                     | 8,350  |   |                                             | $      | 25,520 |                      |   | $      | 1,972 | (2 |   |
| Maximum      indebtedness at any month end      |   |                  | 93,400 |   |                                             |   | 46,672 |                      |   |   | 21,434 |   |   |
| Daily      average indebtedness outstanding     |   |                  | 41,702 |   |                                             |   | 31,270 |                      |   |   | 6,349 |   |   |
| Average      rate paid for the year             |   |                  | 0.56   | %      |                                             |   | 0.08   | %                         |   |   | 0.44 | % |   |
| Average      rate paid on period-end borrowings |   |                  | 0.01   | %      |                                             |   | 0.18   | %                         |   |   | 2.79 | % |   |
|                                            |   |                  |   |   |                                             |   |   |                      |   |   |   |   |   |
| 2008                                            |   |                  |   |   |                                             |   |   |                      |   |   |   |   |   |
| Balance      at December 31,                    |   | $                     | 19,875 |   |                                             | $      | 40,868 |                      |   | $      | 1,302 | (2 |   |
| Maximum      indebtedness at any month end      |   |                  | 36,700 |   |                                             |   | 40,868 |                      |   |   | 14,087 |   |   |
| Daily      average indebtedness outstanding     |   |                  | 19,777 |   |                                             |   | 32,433 |                      |   |   | 8,971 |   |   |
| Average      rate paid for the year             |   |                  | 1.58   | %      |                                             |   | 1.50   | %                         |   |   | 3.93 | % |   |
| Average      rate paid on period-end borrowings |   |                  | 0.56   | %      |                                             |   | 0.11   | %                         |   |   | 0.41 | % |   |
|                                            |   |                  |   |   |                                             |   |   |                      |   |   |   |   |   |
| 2007                                            |   |                  |   |   |                                             |   |   |                      |   |   |   |   |   |
| Balance      at December 31,                    |   | $                     | 7,550  |   |                                             | $      | 32,806 |                      |   | $      | 12,775 | (2 |   |
| Maximum      indebtedness at any month end      |   |                  | 26,400 |   |                                             |   | 47,047 |                      |   |   | 13,664 |   |   |
| Daily      average indebtedness outstanding     |   |                  | 15,812 |   |                                             |   | 38,683 |                      |   |   | 11,902 |   |   |
| Average      rate paid for the year             |   |                  | 4.89   | %      |                                             |   | 4.11   | %                         |   |   | 4.17 | % |   |
| Average      rate paid on period-end borrowings |   |                  | 2.47   | %      |                                             |   | 3.32   | %                         |   |   | 4.29 | % |   |

| (1) | Balances      are fully collateralized by government treasury or agency securities held      in the Company’s investmentportfolio. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      FHLB debt and client tax deposit balances of $0.6 million and $1.4      million, respectively at December 31, 2009, $0.1million and $1.2 million,      respectively at December 31, 2008, and $12.2 million and $0.6 million,      respectively at December 31, 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Dollars      in Thousands)                      | 2009   |                                                                        | 2008   |   |
|--------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|--------|
| Due      on October 19, 2009, fixed rate 3.69%   |   |           -               |   |   |           134 | (1) |
| Due      on November 10, 2010, fixed rate 4.72%  |   |          634                   | (1)    |   |          665 |   |
| Due      on December 31, 2010, fixed rate 3.85%  |   |      -                                             |   |   |      349 |   |
| Due      on September 08, 2011, fixed rate 3.65% |   |    10,000                                                    |   |   |    10,000 |   |
| Due      on December 18, 2012, fixed rate 4.84%  |   | 491                                                                         |   |   | 517 |   |
| Due      on March 13, 2013, fixed rate 3.55%     |   | 1,154                                                                       |   |   | 1,188 |   |
| Due      on March 18, 2013, fixed rate 3.31%     |   |            388       |   |   |            399 |   |
| Due      on March 18, 2013, fixed rate 6.37%     |   |            335       |   |   |             420 |   |
| Due      on April 17, 2013, fixed rate 3.42%     |   |          1,057                 |   |   |          1,155 |   |
| Due      on April 17, 2013, fixed rate 3.50%     |   |          1,644                 |   |   |          1,694 |   |
| Due      on May 15, 2013, fixed rate 3.81%       |   |             944 |   |   |             970 |   |
| Due      on May 15, 2013, fixed rate 3.81%       |   |          1,089                 |   |   |          1,120 |   |
| Due      on June 17, 2013, fixed rate 3.85%      |   | 78                                                                          |   |   | 82 |   |
| Due      on June 17, 2013, fixed rate 3.53%      |   |             -   |   |   |             583 |   |
| Due      on June 17, 2013, fixed rate of 4.11%   |   | 1,529                                                                       |   |   | 1,597 |   |
| Due      on September 23, 2013, fixed rate 5.64% |   |             509 |   |   |             622 |   |
| Due      on January 13, 2014, fixed rate 2.96%   |   |          1,600                 |   |   |          - |   |
| Due      on January 26, 2014, fixed rate 5.79%   |   | 996                                                                         |   |   | 1,067 |   |
| Due      on January 27, 2014, fixed rate 5.31%   |   |          1,497                 |   |   |          1,571 |   |
| Due      on February 14, 2014, fixed rate 3.08%  |   |           1,066           |   |   |             - |   |
| Due      on March 10, 2014, fixed rate 4,21%     |   |             -   |   |   |             435 |   |
| Due      on May 27, 2014, fixed rate 5.92%       |   |          279                   |   |   |          334 |   |
| Due      on May 31, 2014, fixed rate 4.88%       |   |        1,968                             |   |   |          2,357 |   |
| Due      on February 23, 2015, fixed rate 4.07%  |   |             712 |   |   |             725 |   |
| Due      on August 17, 2015, fixed rate 4.31%    |   |            541       |   |   |             586 |   |
| Due      on October 15, 2015, fixed rate 4.11%   |   |             714 |   |   |             745 |   |
| Due      on July 20, 2016, fixed rate 6.27%      |   |             779 |   |   |             897 |   |
| Due      on October 3, 2016, fixed rate 5.41%    |   |             205 |   |   |             235 |   |
| Due      on October 31, 2016, fixed rate 5.16%   |   |             456 |   |   |             522 |   |
| Due      on June 27, 2017, fixed rate 5.53%      |   |             525 |   |   |             595 |   |
| Due      on October 31, 2017, fixed rate 4.79%   |   |             653 |   |   |             736 |   |
| Due      on December 11, 2017, fixed rate 4.78%  |   |             583 |   |   |             656 |   |
| Due      on February 22, 2018, fixed rate 4.61%  |   |          1,386                 |   |   |          1,425 |   |
| Due      on April 10, 2018, fixed rate 4.20%     |   |          1,196                 |   |   |          1,217 |   |
| Due      on April 10, 2018, fixed rate 4.20%     |   |          993                   |   |   |          1,010 |   |
| Due      on September 17, 2018, fixed rate 4.23% |   |          2,896                 |   |   |          2,925 |   |
| Due      on September 18, 2018, fixed rate 5.15% |   |             420 |   |   |             468 |   |
| Due      on November 5, 2018, fixed rate 5.10%   |   |          3,072                 |   |   |          3,222 |   |
| Due      on December 3, 2018, fixed rate 4.87%   |   |             442 |   |   |             492 |   |
| Due      on December 17, 2018, fixed rate 6.33%  |   |          1,214                 |   |   |          1,310 |   |
| Due      on February 16, 2021, fixed rate 3.00%  |   |            693       |   |   |             736 |   |
| Due      on January 18, 2022, fixed rate 5.25%   |   |             915 |   |   |             926 |   |
| Due      on May 30, 2023, fixed rate 2.50%       |   |             817 |   |   |             858 |   |
| Due      on June 15, 2023, fixed rate 4.77%      |   |             450 |   |   |             483 |   |
| Due      on July 1, 2025, fixed rate 4.80%       |   |          3,095                 |   |   |          3,294 |   |
| Total      Outstanding                           | $      | 50,015                                                                      |   | $      | 51,322 |   |

| (1) | $0.6 million is classified as      short-term borrowings as of December 31, 2009 and $0.1million classified      as short-term borrowings as of December 31,  2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Dollars      in Thousands) |   |   |   |
|-----------------------------|--------|--------|--------|
| 2010                        |   | $      | 3,276  |  (1) |
| 2011                        |   |   | 12,766 |   |
| 2012                        |   |   | 3,303  |   |
| 2013                        |   |   | 9,266  |   |
| 2014                        |   |   | 6,331  |   |
| 2015      and thereafter    |   |   | 15,073 |   |
| Total                       |   | $      | 50,015 |   |

| (1) | $0.6 million is classified as      short-term borrowings. |
|-----|-----------------------------------------------------------|

----

| (Dollars      in Thousands) | 2009   |   |    | 2008   |   |   | 2007   |   |
|-----------------------------|--------|--------|---------|--------|--------|--------|--------|--------|
| Current:                    |   |   |    |   |   |   |   |   |
| Federal                     | $      | 2,340  |    |   | $      | 11,730 |   |   | $ | 13,603 |   |
| State                       |   | 417    |    |   |   | 510    |   |   |   | 280 |   |
| Deferred:                   |   |   |    |   |   |   |   |   |   |   |   |
| Federal                     |   | (5,767 | )       |   |   | (4,882 | )      |   |   | (32 | ) |
| State                       |   | (2,475 | )       |   |   | (1,289 | )      |   |   | (148 | ) |
| Valuation      Allowance    |   | 149    |    |   |   | 644    |   |   |   | - |   |
| Total                       | $      | (5,336 | )  |   | $      | 6,713  |   |   | $ | 13,703 |   |

| (Dollars      in Thousands)                       | 2009   |      |    | 2008   |   |    | 2007   |   |
|---------------------------------------------------|--------|-----------|---------|--------|--------|---------|--------|--------|
| Tax      Expense at Federal Statutory Rate        | $      | (3,083    | )  |   | $      | 7,678   |   |   | $ | 15,185 |   |
| Increases      (Decreases) Resulting From:        |   |      |    |   |   |    |   |   |   |   |   |
| Tax-Exempt      Interest Income                   |   | (1,533    | )       |   |   | (1,663  | )      |   |   | (1,630 | ) |
| Change      in Reserve for Uncertain Tax Position |   |  687 |    |   |   |  - |   |   |   |  - |   |
| State      Taxes, Net of Federal Benefit          |   | (1,337    | )       |   |   | (506    | )      |   |   | 86 |   |
| Other                                             |   | (219      | )  |   |   | 560     |   |   |   | 62 |   |
| Change      in Valuation Allowance                |   | 149       |    |   |   | 644     |   |   |   | - |   |
| Actual      Tax Expense                           | $      | (5,336    | )  |   | $      | 6,713   |   |   | $ | 13,703 |   |

| (Dollars      in Thousands)                        | 2009   |   | 2008   |   |
|----------------------------------------------------|--------|--------|--------|--------|
| Deferred      Tax Assets attributable to:          |   |   |   |   |
| Allowance      for Loan Losses                     | $      | 16,975 |   | $      | 14,276 |   |
| Associate      Benefits                            |   | 297    |   |   | 385 |   |
| Accrued      Pension/SERP                          |   | 9,685  |   |   | 14,127 |   |
| Interest      on Nonperforming Loans               |   | 2,971  |   |   | 2,247 |   |
| State      Net Operating Loss Carry Forwards       |   | 1,786  |   |   | 776 |   |
| Intangible      Assets                             |   | 147    |   |   | 121 |   |
| Core      Deposit Intangible                       |   | 3,144  |   |   | 2,569 |   |
| Contingency      Reserve                           |   | 373    |   |   | 323 |   |
| Accrued      Expense                               |   | 458    |   |   | 450 |   |
| Leases                                             |   | 433    |   |   | 456 |   |
| Other      Real Estate Owned                       |   | 4,136  |   |   | 482 |   |
| Other                                              |   | 614    |   |   | 586 |   |
| Total      Deferred Tax Assets                     | $      | 41,019 |   | $      | 36,798 |   |
|                                               |   |   |   |   |   |   |
| Deferred      Tax Liabilities attributable to:     |   |   |   |   |   |   |
| Depreciation      on Premises and Equipment        | $      | 4,492  |   | $      | 4,677 |   |
| Deferred      Loan Fees and Costs                  |   | 4,413  |   |   | 3,897 |   |
| Net      Unrealized Gains on Investment Securities |   | 749    |   |   | 796 |   |
| Intangible      Assets                             |   | 2,219  |   |   | 1,919 |   |
| Accrued      Pension/SERP                          |   | 6,850  |   |   | 7,080 |   |
| Securities      Accretion                          |   | 9      |   |   | 15 |   |
| Market      Value on Loans Held for Sale           |   | 28     |   |   | 2 |   |
| Other                                              |   | -      |   |   | - |   |
| Total      Deferred Tax Liabilities                |   | 18,760 |   |   | 18,386 |   |
| Valuation      Allowance                           |   | 793    |   |   | 644 |   |
| Net      Deferred Tax Assets                       | $      | 21,466 |   | $      | 17,768 |   |

----

| (Dollars      in Thousands)                                                                                   | 2009   |   |    | 2008   |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
| Balance      at Beginning of Year                                                                             | $      | 17,768 |    |   | $      | 2,761 |   |
| Income      Tax (Expense) Benefit From Change in Pension    Liability                                         |   | (4,442 | )  |   |   | 10,163 |   |
| Income      Tax Benefit (Expense) From Change in Unrealized Losses on      Available-for-Sale Securities |   | 47     |    |   |   | (683 | )  |
| Deferred      Income Tax Benefit on Continuing Operations                                                     |   | 8,093  |    |   |   | 5,527 |   |
| Balance      at End of Year                                                                                   | $      | 21,466 |    |   | $      | 17,768 |   |

| (Dollars      in Thousands)                                                  | 2009   |          | 2008   |   |          | 2007   |   |
|------------------------------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|--------|
| Balance      at January 1,                                                   | $      | 3,916         |   | $      | 3,254         |   |   | $ | 2,021 |   |
| Additions      Based on Tax Positions Related to Prior Years                 |   |        - |   |   |        - |   |   |   | 252  |   |
| Decreases      Based on Tax Positions Related to Prior Years                 |   | -             |   |   | (252          | )      |   |   | - |   |
| Addition      Based on Tax Positions Related to      Current  Year |   | 673           |   |   | 914           |   |   |   | 918 |   |
| Balance      at December 31, 2009                                            | $      | 4,589         |   | $      | 3,916         |   |   | $ | 3,254 |   |

----

| Options                               |   | Shares |   |   | Weighted-Average      Exercise Price |   |   | Weighted-Average      Remaining Contractual Term |   |   | Aggregate      Intrinsic Value |   |
|---------------------------------------|--------|--------|--------|--------|--------------------------------------|--------|--------|--------------------------------------------------|--------|--------|--------------------------------|--------|
| Outstanding      at January 1, 2009   |   |   | 60,384 |   |                                 | $      | 32.79  |                                             |   | $      | 5.9                            |   |   | $ | - |   |
| Granted                               |   |   | -      |   |                                 |   | -      |                                             |   |   | -                              |   |   |   | - |   |
| Exercised                             |   |   | -      |   |                                 |   | -      |                                             |   |   | -                              |   |   |   | - |   |
| Forfeited      or expired             |   |   | -      |   |                                 |   | -      |                                             |   |   | -                              |   |   |   | - |   |
| Outstanding      at December 31, 2009 |   |   | 60,384 |   |                                 | $      | 32.79  |                                             |   | $      | 4.9                            |   |   | $ | - |   |
| Exercisable      at December 31, 2009 |   |   | 60,384 |   |                                 | $      | 32.79  |                                             |   | $      | 4.9                            |   |   | $ | - |   |

----

|                          |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Dividend      yield           |   |   | 3.7    | %      |   |   | 3.0    | %      |   |   | 2.1 | % |
| Expected      volatility      |   |   | 67.5   | %      |   |   | 37.0   | %      |   |   | 25.5 | % |
| Risk-free      interest rate  |   |   | 0.3    | %      |   |   | 2.6    | %      |   |   | 4.8 | % |
| Expected      life (in years) |   |   | 0.5    |   |   |   | 0.5    |   |   |   | 0.5 |   |

----

|  (Dollars      in Thousands)                                                                               | 2009     |                                                                   |   | 2008     |   |                                                                   | 2007     |   |
|-----------------------------------------------------------------------------------------------------------------|----------|------------------------------------------------------------------------|--------|----------|--------|------------------------------------------------------------------------|----------|--------|
| Change      in Projected Benefit Obligation:                                                                    |     |                                                                   |   |     |   |                                                                   |     |   |
| Benefit      Obligation at Beginning of Year                                                                    | $        |    79,607                                               |   |     | $      |    70,118                                               |     |   | $ | 68,671 |   |
| Service      Cost                                                                                               |     |          5,593            |   |     |   |          5,351            |     |   |   | 4,903 |   |
| Interest      Cost                                                                                              |     |          4,588            |   |     |   |          4,482            |     |   |   | 3,967 |   |
| Actuarial      (Gain)/Loss                                                                                      |     | (2,977                                                                 | )      |     |   |          4,038            |     |   |   | (1,420 | ) |
| Benefits      Paid                                                                                              |     |         (2,829                 | )      |     |   |         (6,483                 | )        |   |   | (5,759 | ) |
| Expenses      Paid                                                                                              |     |            (233 | )      |     |   |            (165 | )        |   |   | (244 | ) |
| Plan      Change(1)                                                                                             |     | -                                                                      |   |     |   | 2,266                                                                  |     |   |   | - |   |
| Projected      Benefit Obligation at End of Year                                                                | $        | 83,749                                                                 |   |     | $      | 79,607                                                                 |     |   | $ | 70,118 |   |
|                                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Accumulated      Benefit Obligation at End of Year                                                              | $        | 64,889                                                                 |   |     | $      | 56,368                                                                 |     |   | $ | 51,256 |   |
|                                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Change      in Plan Assets:                                                                                     |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Fair      Value of Plan Assets at Beginning of Year                                                             | $        |     66,363                                         |   |     | $      |     75,653                                         |     |   | $ | 66,554 |   |
| Actual      Gain/(Loss) Return on Plan Assets                                                                   |     | 8,246                                                                  |   |     |   | (14,642                                                                | )   |   |   | 3,602 |   |
| Employer      Contributions                                                                                     |     |        8,000                        |   |     |   |        12,000                       |     |   |   | 11,500 |   |
| Benefits      Paid                                                                                              |     |         (2,829                 | )      |     |   |         (6,483                 | )        |   |   | (5,759 | ) |
| Expenses      Paid                                                                                              |     |            (233 | )      |     |   |            (165 | )        |   |   | (244 | ) |
| Fair      Value of Plan Assets at End of Year                                                                   | $        | 79,547                                                                 |   |     | $      | 66,363                                                                 |     |   | $ | 75,653 |   |
|                                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Amounts      Recognized in the Consolidated Statements of Financial      Condition:                             |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Other      Assets                                                                                               | $        | -                                                                      |   |     | $      | -                                                                      |     |   | $ | 5,535 |   |
| Other      Liabilities                                                                                          |     | 4,202                                                                  |   |     |   | 13,245                                                                 |     |   |   | - |   |
|                                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Amounts      (Pre-Tax) Recognized in Accumulated Other Comprehensive      Income:                               |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Net      Actuarial Losses                                                                                       | $        | 23,224                                                                 |   |     | $      | 32,341                                                                 |     |   | $ | 8,622 |   |
| Prior      Service Cost                                                                                         |     | 2,860                                                                  |   |     |   | 3,369                                                                  |     |   |   | 1,611 |   |
|                                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Components      of Net Periodic Benefit Costs:                                                                  |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Service      Cost                                                                                               | $        | 5,593                                                                  |   |     | $      | 5,351                                                                  |     |   | $ | 4,903 |   |
| Interest      Cost                                                                                              |     | 4,588                                                                  |   |     |   | 4,482                                                                  |     |   |   | 3,967 |   |
| Expected      Return on Plan Assets                                                                             |     | (5,060                                                                 | )      |     |   | (5,921                                                                 | )        |   |   | (5,083 | ) |
| Amortization      of Prior Service Costs                                                                        |     | 509                                                                    |   |     |   | 509                                                                    |     |   |   | 301 |   |
| Recognized      Net Actuarial Loss                                                                              |     | 2,954                                                                  |   |     |   | 882                                                                    |     |   |   | 1,039 |   |
| Net      Periodic Benefit Cost                                                                                  | $        | 8,584                                                                  |   |     | $      | 5,303                                                                  |     |   | $ | 5,127 |   |
|                                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Assumptions:                                                                                                    |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Weighted-average      used to determine benefit obligations:                                                    |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Discount      Rate                                                                                              |     | 5.75                                                                   | %      |     |   | 6.00                                                                   | %        |   |   | 6.25 | % |
| Expected      Return on Plan Assets                                                                             |     | 8.00                                                                   | %      |     |   | 8.00                                                                   | %        |   |   | 8.00 | % |
| Rate      of Compensation Increase                                                                              |     | 4.50                                                                   | %      |     |   | 5.50                                                                   | %        |   |   | 5.50 | % |
| Measurement      Date                                                                                           | 12/31/09 |                                                                   |   | 12/31/08 |   |                                                                   | 12/31/07 |   |
|                                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Weighted-average      used to determine net cost:                                                               |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Discount      Rate                                                                                              |     | 6.00                                                                   | %      |     |   | 6.25                                                                   | %        |   |   | 6.00 | % |
| Expected      Return on Plan Assets                                                                             |     | 8.00                                                                   | %      |     |   | 8.00                                                                   | %        |   |   | 8.00 | % |
| Rate      of Compensation Increase                                                                              |     | 5.50                                                                   | %      |     |   | 5.50                                                                   | %        |   |   | 5.50 | % |
|                                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| (1) In 2008, the      employee benefits plan was amended to include stock as plan      compensation.  |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |

----

| Actuarial      Loss           |   | $      | 2,123 |   |
|-------------------------------|--------|--------|-------|--------|
| Prior      Service Cost       |   |   | 509   |   |
|     Total |   | $      | 2,632 |   |

|                   | Target      Allocation |   |   | Percentage      of PlanAssets      at Year-End(1) |   |
|------------------------|------------------------|--------|--------|---------------------------------------------------|--------|
|                   | 2010                   |   |   | 2009                                              |   |   | 2008 |   |
| Equity      Securities | 65                     | %      |   |                                              | 45     | % |   |   | 39 | % |
| Debt      Securities   | 30                     | %      |   |                                              | 26     | % |   |   | 26 | % |
| Cash      Equivalent   | 5                      | %      |   |                                              | 29     | % |   |   | 35 | % |
| Total                  | 100                    | %      |   |                                              | 100    | % |   |   | 100 | % |

| (1) | Represents asset allocation at      year-end which may differ from the average target allocation for the year      due to the year-end cash contribution to the  plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars in Thousands)                                                          |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Level      1:                                                                   |   |   |   |   |   |   |
|          U.S. Treasury                                           |   | $      | 5,375  |   |   | $      | 4,189 |   |
|          Common Stocks                                           |   |   | 9,469  |   |   |   | 6,464 |   |
|          Mutual Funds                                            |   |   | 30,795 |   |   |   | 33,568 |   |
|          Cash and Cash Equivalents                               |   |   | 21,756 |   |   |   | 12,159 |   |
|                                                                            |   |   |   |   |   |   |   |   |
| Level      2:                                                              |   |   |   |   |   |   |   |   |
|          U.S. Government Agencies and Corporations               |   |   | 12,152 |   |   |   | 9,449 |   |
|                                                                            |   |   |   |   |   |   |   |   |
|              Total fair value of plan assets |   | $      | 79,547 |   |   | $      | 65,829 |   |

----

| 2010                   |   | $      | 2,967,094  |   |
|------------------------|--------|--------|------------|--------|
| 2011                   |   |   | 3,865,783  |   |
| 2012                   |   |   | 4,629,786  |   |
| 2013                   |   |   | 5,474,838  |   |
| 2014                   |   |   | 6,571,039  |   |
| 2015      through 2019 |   |   | 40,737,804 |   |
| Total                  |   | $      | 64,246,344 |   |

|   (Dollars      in Thousands) | 2009         |   | 2008          |   | Expected      Range of Contribution2010(1) |
|-----------------------------------------|--------------|--------|---------------|--------|--------------------------------------------|
| Actual      Contributions               | $      8,000 |   | $      12,000 |   | $      6,000 - $12,000                     |

| (1) | Estimate      reflects the Company’s best estimate given historical funding practice and      the 2010 minimum ($6.0 million) and maximum ($45.0 million) allowable      contribution. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Dollars      in Thousands)                                                         | 2009     |                                                                                   |   | 2008     |   |                                                                  | 2007     |   |
|-------------------------------------------------------------------------------------|----------|----------------------------------------------------------------------------------------|--------|----------|--------|-----------------------------------------------------------------------|----------|--------|
| Change      in Projected Benefit Obligation:                                        |     |                                                                                   |   |     |   |                                                                  |     |   |
| Benefit      Obligation at Beginning of Year                                        | $        |      5,033                                                    |   |     | $      | 3,706                                                                 |     |   | $ | 4,018 |   |
| Service      Cost                                                                   |     |               20 |   |     |   | 31                                                                    |     |   |   | 83 |   |
| Interest      Cost                                                                  |     |             178            |   |     |   | 287                                                                   |     |   |   | 208 |   |
| Actuarial      Gain                                                                 |     |          (2,057                           | )      |     |   | (180                                                                  | )        |   |   | (603 | ) |
| Plan      Change(1)                                                                 |     |          -                                |   |     |   | 1,190                                                                 |     |   |   | - |   |
| Projected      Benefit Obligation at End of Year                                    | $        |    3,174                                                                |   |     | $      | 5,034                                                                 |     |   | $ | 3,706 |   |
|                                                                                |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Accumulated      Benefit Obligation at End of Year                                  | $        | 2,889                                                                                  |   |     | $      | 2,899                                                                 |     |   | $ | 2,603 |   |
|                                                                                |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Amounts      Recognized in the Consolidated Statements of Financial      Condition: |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Other      Liabilities                                                              | $        |            3,174                |   |     | $      | 5,034                                                                 |     |   | $ | 3,706 |   |
|                                                                                |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Amounts      (Pre-Tax) Recognized in Accumulated Other Comprehensive      Income:   |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Net      Actuarial Gain                                                             | $        | (1,854)                                                                                |   |     | $      | (148)                                                                 |     |   | $ | (3) |   |
| Prior      Service Cost                                                             |     | 874                                                                                    |   |     |   | 1,055                                                                 |     |   |   | 44 |   |
|                                                                                |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Components      of Net Periodic Benefit Costs:                                      |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Service      Cost                                                                   | $        | 20                                                                                     |   |     | $      | 31                                                                    |     |   | $ | 83 |   |
| Interest      Cost                                                                  |     | 178                                                                                    |   |     |   | 287                                                                   |     |   |   | 208 |   |
| Amortization      of Prior Service Cost                                             |     | 180                                                                                    |   |     |   | 180                                                                   |     |   |   | 7 |   |
| Recognized      Net Actuarial (Gain)Loss                                            |     |            (350                 | )      |     |   |            (36 | )        |   |   | 8 |   |
| Net      Periodic Benefit Cost                                                      | $        | 28                                                                                     |   |     | $      | 462                                                                   |     |   | $ | 306 |   |
|                                                                                |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Assumptions:                                                                        |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Weighted-average      used to determine the benefit obligations:                    |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Discount      Rate                                                                  |     | 5.75                                                                                   | %      |     |   | 6.00                                                                  | %        |   |   | 6.25 | % |
| Rate      of Compensation Increase                                                  |     | 4.50                                                                                   | %      |     |   | 5.50                                                                  | %        |   |   | 5.50 | % |
| Measurement      Date                                                               | 12/31/09 |                                                                                   |   | 12/31/08 |   |                                                                  | 12/31/07 |   |
|                                                                                |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Weighted-average      used to determine the net cost:                               |     |                                                                                   |   |     |   |                                                                  |     |   |   |   |   |
| Discount      Rate                                                                  |     | 6.00                                                                                   | %      |     |   | 6.25                                                                  | %        |   |   | 6.00 | % |
| Rate      of Compensation Increase                                                  |     | 5.50                                                                                   | %      |     |   | 5.50                                                                  | %        |   |   | 5.50 | % |

| (1) | In      2008, the SERP plan was amended to include stock as plan      compensation. |
|-----|-------------------------------------------------------------------------------------|

----

| 2010                   |   | $      | 217,590   |   |
|------------------------|--------|--------|-----------|--------|
| 2011                   |   |   | 251,160   |   |
| 2012                   |   |   | 273,567   |   |
| 2013                   |   |   | 267,543   |   |
| 2014                   |   |   | 399,901   |   |
| 2015      through 2019 |   |   | 1,651,556 |   |
|        Total      |   | $      | 3,061,317 |   |

| (Dollars      in Thousands, Except Per Share Data)                                                            |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Numerator:                                                                                                    |   |   |   |   |   |   |   |   |   |
| Net      (Loss) Income                                                                                        |   | $      | (3,471 | )      |   | $      | 15,225 |   |   | $ | 29,683 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator      for Basic Earnings Per Share Weighted-Average Shares                                         |   |   | 17,044 |   |   |   | 17,141 |   |   |   | 17,909 |   |
| Effects      of Dilutive Securities Stock Compensation Plans                                                  |   |   | 1      |   |   |   | 6      |   |   |   | 3 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator      for Diluted Earnings Per Share Adjusted Weighted-Average Shares and      Assumed Conversions |   |   | 17,045 |   |   |   | 17,147 |   |   |   | 17,912 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      (Loss) Earnings Per Share                                                                          |   | $      | (0.20  | )      |   | $      | 0.89   |   |   | $ | 1.66 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      (Loss) Earnings Per Share                                                                        |   | $      | (0.20  | )      |   | $      | 0.89   |   |   | $ | 1.66 |   |

----

|                          |   | Actual |    | RequiredFor      CapitalAdequacy      Purposes |   | To      Be Well-Capitalized      UnderPrompt      CorrectiveAction      Provisions |    |
|-------------------------------|--------|--------|---------|------------------------------------------------|--------|------------------------------------------------------------------------------------|---------|
| (Dollars inThousands)         |   | Amount | Ratio   |                                           | Amount | Ratio                                                                              |    | Amount | Ratio |   |
| As      of December 31, 2009: |   |   |    |                                           |   |                                                                               |    |   |   |   |
| Tier      I Capital:          |   |   |    |                                           |   |                                                                               |    |   |   |   |
| CCBG                          |   | $      | 257,108 | 12.76                                          | %      | $                                                                                  | 81,370  | 4.00 | % | * | * |   |
| CCB                           |   |   | 238,433 | 11.86                                          | %      |                                                                               | 81,194  | 4.00 | % | 121,791 | 6.00 | % |
|                          |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| Total      Capital:           |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| CCBG                          |   |   | 284,423 | 14.11                                          | %      |                                                                               | 162,740 | 8.00 | % | * | * |   |
| CCB                           |   |   | 263,806 | 13.12                                          | %      |                                                                               | 162,388 | 8.00 | % | 202,985 | 10.00 | % |
|                          |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| Tier      I Leverage:         |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| CCBG                          |   |   | 257,108 | 10.39                                          | %      |                                                                               | 81,370  | 4.00 | % | * | * |   |
| CCB                           |   |   | 238,433 | 9.66                                           | %      |                                                                               | 81,194  | 4.00 | % | 101,493 | 5.00 | % |
|                          |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| As      of December 31, 2008: |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| Tier      I Capital:          |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| CCBG                          |   | $      | 271,767 | 13.34                                          | %      | $                                                                                  | 81,948  | 4.00 | % | * | * |   |
| CCB                           |   |   | 269,812 | 13.27                                          | %      |                                                                               | 81,762  | 4.00 | % | 122,643 | 6.00 | % |
|                          |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| Total      Capital:           |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| CCBG                          |   |   | 299,263 | 14.69                                          | %      |                                                                               | 163,895 | 8.00 | % | * | * |   |
| CCB                           |   |   | 295,362 | 14.53                                          | %      |                                                                               | 163,524 | 8.00 | % | 204,405 | 10.00 | % |
|                          |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| Tier      I Leverage:         |   |   |    |                                           |   |                                                                               |    |   |   |   |   |   |
| CCBG                          |   |   | 271,767 | 11.51                                          | %      |                                                                               | 81,948  | 4.00 | % | * | * |   |
| CCB                           |   |   | 269,812 | 11.45                                          | %      |                                                                               | 81,762  | 4.00 | % | 102,202 | 5.00 | % |

| * | Not applicable to bank holding      companies. |
|---|------------------------------------------------|

----

| (Dollars      in Thousands)                       |   | 2009   |   |   | 2008   |   |   | 2007      |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
| Noninterest      Income:                          |   |   |   |   |   |   |   |      |   |
| Merchant      Fee Income                          |   | $      | 2,359  |   |   | $      | 5,548  |      |   | $ | 7,257 |   |
| Interchange      Commission Fees                  |   |   | 4,432  |   |   |   | 4,165  |      |   |   | 3,757 |   |
| ATM/Debit      Card Fees                          |   |   | 3,515  |   |   |   | 2,988  |      |   |   | 2,692 |   |
| Retail      Brokerage Fees                        |   |   | 2,655  |   |   |   | 2,399  |      |   |   | 2,510 |   |
|                                              |   |   |   |   |   |   |   |      |   |   |   |   |
| Noninterest      Expense:                         |   |   |   |   |   |   |   |      |   |   |   |   |
| Maintenance      Agreements -  FF&E |   |   | 3,225  |   |   |   | 3,506  |      |   |   | 3,684 |   |
| Legal      Fees                                   |   |   | 3,975  |   |   |   | 2,240  |      |   |   | 1,739 |   |
| Professional      Fees                            |   |   | 4,501  |   |   |   | 4,083  |      |   |   | 3,855 |   |
| Interchange      Fees                             |   |   | 1,929  |   |   |   | 4,577  |      |   |   | 6,118 |   |
| Telephone                                         |   |   | 2,227  |   |   |   | 2,522  |      |   |   | 2,373 |   |
| Advertising                                       |   |   | 3,285  |   |   |   | 3,609  |      |   |   | 3,742 |   |
| Processing      Services                          |   |   | 3,591  |   |   |   | 3,921  |      |   |   | 3,278 |   |
| FDIC      Insurance Fees                          |   |   | 4,616  |   |   |   | 835    | (1)       |   |   | 240 | (1)  |
| Printing      and Supplies                        |   |   | 1,882  |   |   |   | 1,977  | (1)  |   |   | 2,124 | (1)  |
| Other      Real Estate Owned                      |   |   | 6,843  |   |   |   | 1,120  | (1)  |   |   | 159 | (1)  |

| (1) | Less than 1% of the appropriate      threshold. |
|-----|-------------------------------------------------|

----

| (Dollars      in Thousands)          |   | Amount |    |
|--------------------------------------|--------|--------|---------|
| Commitments      to Extend Credit(1) |   | $      | 326,170 |   |
| Standby      Letters of Credit       |   | $      | 13,219  |   |

| (1) | Commitments include unfunded      loans, revolving lines of credit, and other unused      commitments. |
|-----|--------------------------------------------------------------------------------------------------------|

----

----

| (Dollars      in Thousands)                                             |   | Level      1 Inputs |   |   | Level      2 Inputs |   |    | Level      3 Inputs |   |   | Total      Fair Value |   |
|-------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|---------|---------------------|--------|--------|-----------------------|--------|
| 2009                                                                    |   |                |   |   |                |   |    |                |   |   |                  |   |
| Securities      available for sale:                                     |   |                |   |   |                |   |    |                |   |   |                  |   |
|          US Treasury                                     |   | $                   | 22,445 |   |                | $      | -       |                |   | $      | -                     |   |   | $ | 22,444 |   |
|          U.S. Government Agencies and Corporations       |   |                | -      |   |                |   | -       |                |   |   | -                     |   |   |   | - |   |
|          State and Political Subdivisions                |   |                | 3,709  |   |                |   | 103,841 |                |   |   | -                     |   |   |   | 107,550 |   |
|          Mortgage-Backed Securities                      |   |                | -      |   |                |   | 34,143  |                |   |   | -                     |   |   |   | 34,143 |   |
|          Other Securities                           |   |                | -      |   |                |   | -       |                |   |   | -                     |   |   |   | - |   |
|                                                                    |   |                |   |   |                |   |    |                |   |   |                  |   |   |   |   |   |
| 2008                                                                    |   |                |   |   |                |   |    |                |   |   |                  |   |   |   |   |   |
| Securities      available for sale:                                     |   |                |   |   |                |   |    |                |   |   |                  |   |   |   |   |   |
|          US Treasury                                |   |                | 29,672 |   |                |   | -       |                |   |   | -                     |   |   |   | 29,672 |   |
|          U.S. Government Agencies and Corporations  |   |                | -      |   |                |   | 33,842  |                |   |   | -                     |   |   |   | 33,842 |   |
|          State and Political Subdivisions           |   |                | 2,698  |   |                |   | 98,864  |                |   |   | -                     |   |   |   | 101,562 |   |
|          Mortgage-Backed Securities                      |   |                | -      |   |                |   | 13,504  |                |   |   | -                     |   |   |   | 13,504 |   |
|          Other Securities                           |   |                |   |   |                |   |    |                |   |   | 1,107                 |   |   |   | 1,107 |   |
|                                                                    |   |                |   |   |                |   |    |                |   |   |                  |   |   |   |   |   |

| (Dollars      in Thousands)                                      |   | 2009   |   |    | 2008  |   |
|------------------------------------------------------------------|--------|--------|--------|---------|------------|--------|
| Balance,      Beginning of year                                  |   | $      | 1,107  |    |       | $      | 1,061 |
| Temporary      impairment included in other comprehensive income |   |   | (807   | )  |       |   |   |
| Other      than temporary credit impairment realized in earnings |   |   | (300   | )  |       |   |   |
| Balance,      End of  year                             |   | $      | -      |    |       | $      | 1,107 |

----

|                                         |   | At      December 31, |      |
|----------------------------------------------|--------|----------------------|-----------|
|                                         |   | 2009                 |      |   | 2008 |   |
| (Dollars      in Thousands)                  |   | CarryingValue        |      |   | EstimatedFairValue |   |   | CarryingValue |   |   | EstimatedFairValue |   |
| Financial      Assets:                       |   |                 |      |   |   |   |   |   |   |   |   |   |
| Cash                                         |   | $                    | 57,877    |   |   | $ | 57,877 |   |   | $ | 88,143 |   |   | $ | 88,143 |   |
| Short-Term      Investments                  |   |                 | 276,416   |   |   |   | 276,416 |   |   |   | 6,806 |   |   |   | 6,806 |   |
| Investment      Securities                   |   |                 | 176,673   |   |   |   | 176,673 |   |   |   | 191,569 |   |   |   | 191,569 |   |
| Loans,      Net of Allowance for Loan Losses |   |                 | 1,871,941 |   |   |   | 1,851,699 |   |   |   | 1,920,793 |   |   |   | 1,915,887 |   |
| Total      Financial Assets                  |   | $                    | 2,382,907 |   |   | $ | 2,362,665 |   |   | $ | 2,207,311 |   |   | $ | 2,202,405 |   |
|                                         |   |                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Liabilities:                  |   |                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                     |   | $                    | 2,258,234 |   |   | $ | 2,258,899 |   |   | $ | 1,992,174 |   |   | $ | 1,960,361 |   |
| Short-Term      Borrowings                   |   |                 | 35,841    |   |   |   | 34,209 |   |   |   | 62,044 |   |   |   | 61,799 |   |
| Subordinated      Notes Payable              |   |                 | 62,887    |   |   |   | 62,569 |   |   |   | 62,887 |   |   |   | 63,637 |   |
| Long-Term      Borrowings                    |   |                 | 49,380    |   |   |   | 51,509 |   |   |   | 51,470 |   |   |   | 57,457 |   |
| Total      Financial Liabilities             |   | $                    | 2,406,342 |   |   | $ | 2,407,186 |   |   | $ | 2,168,575 |   |   | $ | 2,143,254 |   |

----

| (Dollars      in Thousands)                                                                  | 2009   |    |    | 2008   |   |   | 2007   |   |
|----------------------------------------------------------------------------------------------|--------|---------|---------|--------|--------|--------|--------|--------|
| OPERATING      INCOME                                                                        |   |    |    |   |   |   |   |   |
| Income      Received from Subsidiary Bank:                                                   |   |    |    |   |   |   |   |   |
| Dividends                                                                                    | $      | 35,000  |    |   | $      | 16,655 |   |   | $ | 49,207 |   |
| Overhead      Fees                                                                           |   | 3,209   |    |   |   | 3,209  |   |   |   | 3,532 |   |
| Other      Income                                                                            |   | 121     |    |   |   | 184    |   |   |   | 164 |   |
| Total      Operating Income                                                                  |   | 38,330  |    |   |   | 20,048 |   |   |   | 52,903 |   |
|                                                                                         |   |    |    |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSE                                                                       |   |    |    |   |   |   |   |   |   |   |   |
| Salaries      and Associate Benefits                                                         |   | 1,694   |    |   |   | 1,341  |   |   |   | 1,812 |   |
| Interest      on Long-Term Debt                                                              |   | -       |    |   |   | 35     |   |   |   | - |   |
| Interest      on Subordinated Notes Payable                                                  |   | 3,730   |    |   |   | 3,735  |   |   |   | 3,730 |   |
| Professional      Fees                                                                       |   | 999     |    |   |   | 978    |   |   |   | 787 |   |
| Advertising                                                                                  |   | 202     |    |   |   | 244    |   |   |   | 260 |   |
| Legal      Fees                                                                              |   | 176     |    |   |   | 213    |   |   |   | 375 |   |
| Other                                                                                        |   | 813     |    |   |   | 620    |   |   |   | 621 |   |
| Total      Operating Expense                                                                 |   | 7,614   |    |   |   | 7,166  |   |   |   | 7,585 |   |
| Income      Before Income Taxes and Equity in Undistributed Earnings of Subsidiary      Bank |   | 30,716  |    |   |   | 12,882 |   |   |   | 45,318 |   |
| Income      Tax Benefit                                                                      |   | (1,430  | )       |   |   | (737   | )      |   |   | (1,429 | ) |
| Income      Before Equity in Undistributed Earnings of Subsidiary      Bank                  |   | 32,146  |    |   |   | 13,619 |   |   |   | 46,747 |   |
| Equity      in Undistributed Earnings of Subsidiary Bank                                     |   | (35,617 | )       |   |   | 1,606  |   |   |   | (17,064 | ) |
| Net      (Loss) Income                                                                       | $      | (3,471  | )  |   | $      | 15,225 |   |   | $ | 29,683 |   |

| (Dollars      in Thousands, Except Per Share Data)                                                                                                                                               | 2009   |    |   | 2008   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|
| ASSETS                                                                                                                                                                                           |   |    |   |   |   |
| Cash      and Due From Subsidiary Bank                                                                                                                                                           | $      | 20,425  |   |   | $      | 950 |   |
| Investment      in Subsidiary Bank                                                                                                                                                               |   | 314,946 |   |   |   | 343,603 |   |
| Other      Assets                                                                                                                                                                                |   | 2,265   |   |   |   | 2,689 |   |
| Total      Assets                                                                                                                                                                                | $      | 337,636 |   |   | $      | 347,242 |   |
|                                                                                                                                                                                             |   |    |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                      |   |    |   |   |   |   |   |
| Subordinated      Notes Payable                                                                                                                                                                  | $      | 62,887  |   |   | $      | 62,887 |   |
| Other      Liabilities                                                                                                                                                                           |   | 6,850   |   |   |   | 5,525 |   |
| Total      Liabilities                                                                                                                                                                           | $      | 69,737  |   |   | $      | 68,412 |   |
|                                                                                                                                                                                             |   |    |   |   |   |   |   |
| SHAREOWNERS'      EQUITY                                                                                                                                                                         |   |    |   |   |   |   |   |
| Preferred      Stock, $.01 par value, 3,000,000 shares authorized; no shares issued and      outstanding                                                                                         |   | -       |   |   |   | - |   |
| Common      Stock, $.01 par value; 90,000,000 shares authorized; 17,036,407 and      17,126,997 shares issued and outstanding at December 31, 2009 and      December 31, 2008, respectively |   | 170     |   |   |   | 171 |   |
| Additional      Paid-In Capital                                                                                                                                                                  |   | 36,099  |   |   |   | 36,783 |   |
| Retained      Earnings                                                                                                                                                                           |   | 246,460 |   |   |   | 262,890 |   |
| Accumulated      Other Comprehensive Loss, Net of Tax                                                                                                                                            |   | (14,830 | )      |   |   | (21,014 | ) |
| Total      Shareowners' Equity                                                                                                                                                                   |   | 267,899 |   |   |   | 278,830 |   |
| Total      Liabilities and Shareowners' Equity                                                                                                                                                   | $      | 337,636 |   |   | $      | 347,242 |   |

----

| (Dollars      in Thousands)                                                                 | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                  |   |    |   |   |   |    |   |   |
| Net      Income                                                                             | $      | (3,471  | )      |   | $      | 15,225  |   |   | $ | 29,683 |   |
| Adjustments      to Reconcile Net Income to Net Cash Provided by Operating      Activities: |   |    |   |   |   |    |   |   |   |   |   |
| Equity      in Undistributed Earnings of Subsidiary Bank                                    |   | 35,617  |   |   |   | (1,606  | )      |   |   | 17,064 |   |
| Non-Cash      Compensation                                                                  |   | -       |   |   |   | 62      |   |   |   | 238 |   |
| Increase      in Other Assets                                                               |   | (528    | )      |   |   | 254     |   |   |   | (152 | ) |
| Increase      in Other Liabilities                                                          |   | 1,325   |   |   |   | 210     |   |   |   | 222 |   |
| Net      Cash Provided by Operating Activities                                              |   | 32,943  |   |   |   | 14,145  |   |   |   | 47,055 |   |
|                                                                                        |   |    |   |   |   |    |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                  |   |    |   |   |   |    |   |   |   |   |   |
| Cash      Paid for Investment in:                                                           |   |    |   |   |   |    |   |   |   |   |   |
| Purchase      of held-to-maturity and available-for-salesecurities                          |   | -       |   |   |   | -       |   |   |   | (1,000 | ) |
| Increase      in Investment in Bank Subsidiary                                              |   | -       |   |   |   | -       |   |   |   | 1,466 |   |
| Net      Cash Used in Investing Activities                                                  |   | -       |   |   |   | -       |   |   |   | 466 |   |
|                                                                                        |   |    |   |   |   |    |   |   |   |   |   |
| CASH      FROM FINANCING ACTIVITIES:                                                        |   |    |   |   |   |    |   |   |   |   |   |
| Payment      of Dividends                                                                   |   | (12,959 | )      |   |   | (12,630 | )      |   |   | (12,823 | ) |
| Repurchase      of Common Stock                                                             |   | (1,561) |   |   |   | (2,414  | )      |   |   | (43.233 | ) |
| Issuance      of Common Stock                                                               |   | 1,052   |   |   |   | 891     |   |   |   | 572 |   |
| Net      Cash (Used in) Provided by Financing Activities                                    |   | (13,468 | )      |   |   | (14,153 | )      |   |   | (55,484 | ) |
|                                                                                        |   |    |   |   |   |    |   |   |   |   |   |
| Net      Increase (Decrease) in Cash                                                        |   | 19,475  |   |   |   | (8      | )      |   |   | (7,963 | ) |
| Cash      at Beginning of Period                                                            |   | 950     |   |   |   | 958     |   |   |   | 8,921 |   |
| Cash      at End of Period                                                                  | $      | 20,425  |   |   | $      | 950     |   |   | $ | 958 |   |

|  (Dollars in      Thousands)                                                                                                                                                                                                                                                                                               |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Other      Comprehensive Income (Loss):                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |
|             Securities available for sale:                                                                                                                                                                                                                                                        |   |   |    |   |   |   |    |   |   |
|              Change      in net unrealized gain, net of tax benefit of $460 and a tax expense of      $683 and $616                                                                                                                                            |   | $      | (888    | )      |   | $      | 1,230   |   |   | $ | 1,080 |   |
|             Retirement plans:                                                                                                                                                                                                                                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
|              Change      in funded status of defined benefit pension plan and SERP, net of      tax              expense      $4,441, tax benefit of $10,613, and tax expense of    $830 |   |   | 7,072   |   |   |   | (16,179 | )      |   |   | 1,166 |   |
|        Net      Other Comprehensive Gain (Loss)                                                                                                                                                                                                                                              |   | $      | 6,184   |   |   | $      | (14,949 | )      |   | $ | 2,246 |   |
|                                                                                                                                                                                                                                                                                                                            |   |   |    |   |   |   |    |   |   |   |   |   |
| The      components of accumulated other comprehensive income, net of tax, as of      year-end were as follows:                                                                                                                                                                                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                            |   |   |    |   |   |   |    |   |   |   |   |   |
|             Net unrealized gain on securities available for sale                                                                                                                                                                                                                                  |   | $      | 588     |   |   | $      | 1,476   |   |   | $ | 246 |   |
|             Net unfunded liability for defined benefit pension plan and      SERP                                                                                                                                                                                                                 |   |   | (15,418 | )      |   |   | (22,490 | )      |   |   | (6,311 | ) |
|                                                                                                                                                                                                                                                                                                                            |   | $      | (14,830 | )      |   | $      | (21,014 | )      |   | $ | (6,065 | ) |

----

| Item 9. | Changes in and Disagreements with Accountants on      Accounting and FinancialDisclosure |
|--------------|------------------------------------------------------------------------------------------|

| Item      9A. | Controls and  Procedures |
|---------------|--------------------------|

| Item      9B. | OtherInformation |
|---------------|------------------|

----

----

Part III

| Item      10. | Directors, Executive Officers, and Corporate      Governance |
|---------------|--------------------------------------------------------------|

| Item      11. | ExecutiveCompensation |
|---------------|-----------------------|

| Item      12. | Security Ownership of Certain Beneficial Owners and      Management and Related ShareownersMatters |
|---------------|----------------------------------------------------------------------------------------------------|

| Plan      Category                                               |   | Number      of securities to be issued upon exercise ofoutstanding      options, warrants and rights |   | Weighted-average      exercise priceof      outstanding options, warrants and rights |   | Number      of securities remaining availablefor      future issuance under equitycompensation      plans (excludingsecurities      reflected in column (a)) |
|------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                             |   | (a)                                                                                                  |   | (b)                                                                                  |   | (c)                                                                                                                                                          |
| Equity      Compensation Plans Approved by Securities Holders    |   | 60,384(1)                                                                                            |   | $32.79                                                                               |   | 1,321,272(2)                                                                                                                                                 |
|                                                             |   |                                                                                                 |   |                                                                                 |   |                                                                                                                                                         |
| Equity      Compensation Plans Not Approved by SecuritiesHolders |   | --                                                                                                   |   | --                                                                                   |   | --                                                                                                                                                           |
| Total                                                            |   | 60,384                                                                                               |   | $32.79                                                                               |   | 1,321,272                                                                                                                                                    |

|  (1) | Includes      60,384 shares that may be issued upon exercise of outstanding options      under the terminated 1996 Associate Incentive  Plan. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Consists      of 807,978 shares available for issuance under our 2005 Associate      Incentive Plan, 482,164 shares available for issuance under our 2005      Associate Stock Purchase Plan, and 31,130 shares available for issuance      under our 2005 Director Stock Purchase Plan.  Of these plans,      the only plan under which options may be granted in the future is our 2005      Associate Incentive Plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Certain Relationships and Related Transactions, andDirector Independence

Principal Accountant Fees andServices

----

PART IV

Exhibits and Financial Statement Schedules

| The      following documents are filed as part of this  report |
|----------------------------------------------------------------|

|   | 3.1 | Amended      and Restated Articles of Incorporation - incorporated herein by reference      to Exhibit 3 of the Registrant’s 1996 Proxy Statement (filed 4/11/96) (No.      0-13358). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Amended      and Restated Bylaws - incorporated herein by reference to Exhibit 3.2 of      the Registrant’s Form 8-K (filed 11/30/07) (No.  0-13358). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | See      Exhibits 3.1, and 3.2 for provisions of Amended and Restated Articles of      Incorporation and Amended and Restated Bylaws, which define the rights of      its shareholders. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.2 | Capital      City Bank Group, Inc. 2005 Director Stock Purchase Plan - incorporated      herein by reference to Exhibit 4.3 of the Registrant’s Form S-8      (filed 11/5/04) (No. 333-120242). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.3 | Capital      City Bank Group, Inc. 2005 Associate Stock Purchase Plan - incorporated      herein by reference to Exhibit 4.4 of the Registrant’s Form S-8      (filed 11/5/04) (No. 333-120242). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.4 | Capital      City Bank Group, Inc. 2005 Associate Incentive Plan - incorporated herein      by reference to Exhibit 4.5 of the Registrant’s Form S-8 (filed      11/5/04) (No. 333-120242). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.5 | In      accordance with Regulation S-K, Item 601(b)(4)(iii)(A) certain      instruments defining the rights of holders of long-term debt of Capital      City Bank Group, Inc. not exceeding 10% of the total assets of Capital      City Bank Group, Inc. and its consolidated subsidiaries have been omitted;      the Registrant agrees to furnish a copy of any such instruments to the      Commission upon request. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Capital      City Bank Group, Inc. 1996 Dividend Reinvestment and Optional Stock      Purchase Plan - incorporated herein by reference to Exhibit 10 of the      Registrant’s Form S-3 (filed 01/30/97) (No.  333-20683). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.2 | Capital      City Bank Group, Inc. Supplemental Executive Retirement Plan -      incorporated herein by reference to Exhibit 10(d) of the Registrant’s Form      10-K (filed 3/27/03) (No. 0-13358). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3 | Capital      City Bank Group, Inc. 401(k) Profit Sharing Plan – incorporated herein by      reference to Exhibit 4.3 of Registrant’s Form S-8 (filed 09/30/97) (No.      333-36693). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 | 2005      Stock Option Agreement by and between Capital City Bank Group, Inc. and      William G. Smith, Jr., dated March 24, 2005 – incorporated herein by      reference to Exhibit 10.1 of the Registrant’s Form 8-K (filed 3/31/05)      (No. 0-13358). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | 2006      Stock Option Agreement by and between Capital City Bank Group, Inc. and      William G. Smith, Jr., dated March 23, 2006 – incorporated herein by      reference to Exhibit 10.1 of the Registrant’s Form 8-K (filed 3/29/06)      (No. 0-13358). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Capital      City Bank Group, Inc. Non-Employee Director Plan, as amended –      incorporated herein by reference to Exhibit 10.2 of the Registrant’s Form      8-K (filed 3/29/06) (No. 0-13358). |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Form      of Participant Agreement for the Capital City Bank Group, Inc. Long-Term      Incentive Plan – incorporated herein by reference to Exhibit 10.1 of the      Registrant’s Form 10-Q (filed 8/10/06) (No.  0-13358). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Form      of Participant Agreement for 2008 Stock-Based Incentive Plan –      incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form      8-K (filed 6/5/08) (No. 0-13358). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Form      of Participant Agreement for 2009 Stock-Based Incentive Plan –      incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form      8-K (filed 6/30/09) (No. 0-13358). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11 | Statement      re Computation of Per ShareEarnings.* |
|--------|----|------------------------------------------------------|

|   | 14 | Capital      City Bank Group, Inc. Code of Ethics for the Chief Financial Officer and      Senior Financial Officers - incorporated herein by reference to Exhibit 14      of the Registrant’s Form 8-K (filed 3/11/05) (No.  0-13358). |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21 | Capital      City Bank Group, Inc. Subsidiaries – incorporated herein by reference to      Exhibit 21 of the Registrant’s Form 10-K (filed 3/13/09) (No.      0-13358). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.1 | Consent      of Independent Registered Public Accounting  Firm.** |
|--------|------|-------------------------------------------------------------------|

|   | 31.1 | Certification      of CEO pursuant to Securities and Exchange Act Section 302 of the      Sarbanes-Oxley Act of 2002.** |
|--------|------|-------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification      of CFO pursuant to Securities and Exchange Act Section 302 of the      Sarbanes-Oxley Act of 2002.** |
|--------|------|-------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification      of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section      906 of the Sarbanes-Oxley Act of2002.** |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification      of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section      906 of the Sarbanes-Oxley Act of2002.** |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------|

| *  | Information      required to be presented in Exhibit 11 is provided in Note 13 to the      consolidated financial statements under Part II, Item 8 of this Form 10-K      in accordance with the provisions of U.S. generally accepted accounting      principles. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** | Filed      electronically herewith.                                                                                                                                                                                                                                |

----

Signatures

| Directors:                      |   |                           |
|---------------------------------|--------|--------------------------------|
|                            |   |                           |
| /s/      DuBose Ausley          |   | /s/      L. McGrath Keen, Jr.  |
| DuBose      Ausley              |   | L.      McGrath Keen, Jr.      |
|                            |   |                           |
|                            |   |                           |
| /s/      Thomas A. Barron       |   | /s/      Lina S. Knox          |
| Thomas      A. Barron           |   | Lina      S. Knox              |
|                            |   |                           |
|                            |   |                           |
| /s/      Frederick Carroll, III |   | /s/      Henry Lewis, III      |
| Frederick      Carroll, III     |   | Henry      Lewis, III          |
|                            |   |                           |
|                            |   |                           |
| /s/      J. Everitt Drew        |   | /s/      William G. Smith, Jr. |
| J.      Everitt Drew            |   | William      G. Smith, Jr.     |
|                            |   |                           |
|                            |   |                           |
| /s/      John K. Humphress      |   |                           |
| John      K. Humphress          |   |                           |